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A
PROJECT REPORT
ON
“STUDY OF MARKETING STRATEGIESOF
MARUTI UDYOG LIMITED”
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISRATION
OF
Submitt ! B"
SHIKHAR TYAGI
BBA #I TH SEM
ROLL NO$%&'(()*(
Submitt ! T+
M,$S+m -. Kum/,
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IIMT COLLEGE OF MANAGEMENT
GREATER NOIDA
PREFACE
I am student of IIMT College Of Management, pursuing BBA course. And towards
the partial fulfillment of it, I have undergone a project for the period of two months.
I have put my endeavor to ma e the o!jective accomplished in the stipulated time."espite all the limitations, o!stacles, hurdles and hindrances I have toiled my hand
to achieve the goal desired. Being a neophyte in the highly competitive world of
!usiness and in cooperate world, I have come across difficulties to ma e the
o!jective a reality. Anyhow with the ind help and genuine interest formally
supported !y e#treme support of my guide and college authorities, I am presenting
this hand carved efforts. The purpose of this project is to test the level of
competency of an employee !ased on the a!ove aspects. Competencies comprise the
nowledge, s ills, values, and attri!utes demonstrated through !ehavior that results
in competent and superior performance. Competency descri!es what superior
performances actually do on a jo! that produces superior results.
If anywhere something is found unaccepta!le or unnecessary to the theme you arewelcomed with your valua!le suggestions.
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ACKNOWLEDGEMENTS
I owe my sincere than s and gratitude to MA$%TI &%'%(I who inspired me !y
her a!le guidance and was a constant guiding light during the course of
project study.
The support and nowledge provided !y her has !een a great value addition
for me and will go a long way in !uilding a promising career.
)ast !ut not least, I am also than ful to all the respondents of my survey without
whom the project would not have !een completed successfully.
*&+I(+A$ T A-I
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DECLARATION
I here!y declare that this project report entitled // STUDY OF MARKETING
STRATEGIES OF MARUTI UDYOG LIMTED” is written and su!mitted !y me under
the ind guidance of Industry -uide M-$ Mi,!u0/ Di1it *Mar eting Manager .The
findings and interpretations in the report are !ased on !oth primary and secondary
data collection. This project is not copied from any source or other project su!mitted
for similar purpose.
&+I(+A$ T A-I BBA*0Ith &1M
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CERTIFICATE
This is to certify that SHIKHAR TYAGI a student of Bachelor of Business
Administration of, IIMT COLLEGE OF MANAGEMENT , GR$NOIDA has
wor ed under my guidance for the dissertat ion Tit le “MARKETING
STRATEGIES OF MARUTI SU2UKI”$
This dissertation report is prepared in complete fulfillment of Bachelor of
Business Administration *BBA ,
To the !est of my nowledge, this piece of wor is original and no part of this
report has !een su!mitted !y the student to any other Institute 2%niversity
earlier.
M-$ Mi,!u0/ Di1it
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CONTENT
INTRODUCTION OF THE COMPANY 34'5
INDUSTRY PROFILE ')456
COMPANY PROFILE 5'4&(
OBJECTI#E OF THE STUDY &5
RESEARCH METHODOLOGY &)4&&
DATA ANALYSIS 7 INTERPRETATION &34*6
FINDINGS *'
LIMITATIONS *8
CONCLUSION *(4*3
QUESTIONNAIRE *94**
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BIBLIOGRAPHY '66
INTRODUCTION OF THE COMAPANY
MARUTI UDYOG LIMITED
Maruti is India/s largest automo!ile company. The company, a joint venture with
&u3u i of 4apan, has !een a success story li e no other in the annals of the Indian
automo!ile industry.
Today, Maruti is India/s largest automo!ile company. This feat was achieved !y the
missionary 3eal of our employees across the line and the far5sighted vision of our
management.
T. C+m:/;" Mi--i+;%
To provide a wide range of modern, high 6uality fuel efficient vehicles in order to
meet the need of different customers, !oth in domestic and e#port mar ets.
T. C+m:/;" #i-i+;%
7e must !e an internationally competitive company in terms of our products and
services. 7e must retain our leadership in India and should also aspire to !e among
the glo!al players.
T. i, <+=u- i- +;%
• Building a continuously improving organisation adapta!le to 6uic changes
• 8roviding value and satisfaction to the customer
• Aligning and fully involving all our employees, suppliers and dealers to face
competition
• Ma#imising &hareholder/s value
• Being a responsi!le corporate citi3en
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At Maruti, they have a clear perspective on manpower. They see it as a uni6ue
resource, in the sense that optimal productivity of other resources depends largely on
the way human resources are utilised. The !asic philosophy of management thatunderlies the Maruti culture is that all employees of the company should !e moulded
into a team which then strives as one, to achieve commonly shared company goals
and o!jectives. To ma e this philosophy tena!le, the Company ta es several
initiatives. Inputs are sought from employees at all levels. They !elieve that
everyone should contri!ute to the formulation of company policies, goals and
o!jectives. &econdly, at Maruti, they encourage leadership in the !est sense of the
word. According to us, a leader is one who must !e impartial, must have the a!ilityto rise a!ove his own su!jectivity, and, most importantly, must practice what he
preaches.
They understand that the process of creating a sense of !elonging that all employees
can identify with is a lengthy one. To ensure that this translates into concrete reality,
they have ta en several simple !ut specific and well thought out measures. The first
step in this direction has !een the introduction of a common uniform for all
employees. Another measure is the creation of a common canteen where allemployees have lunch, stand in common 6ueues, and sit on the same ta!le. Common
toilets, common transport and similar facilities for all levels of employees are other
measures that reinforce their emphasis on genuine e6uality in the wor place.
At Maruti They do not !elieve in the notion of organisational hierarchies. As a
matter of fact, the management structure and systems in Maruti have !een designed
to promote decentralisation of authority. Maruti has a hori3ontal management
structure with only four functional levels of responsi!ility to facilitate 6uic erdecision ma ing.
Another focus area of the Maruti culture is the maintenance of a smoothly
functioning communication networ . Maruti !elieves that communication channels
!etween la!our and management cannot simply consist of having a la!our
representative on the Board of the Company. They have faith in the a!ility of la!our
to effectively participate in management and ma e constructive suggestions. To
encourage this, they ensure that there is a thorough dissemination of information at
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all levels, through newsletters or via a letter from the Chief 1#ecutive to all
employees. Meetings with the %nion are held regularly, and programmes !eing
contemplated !y the Company are discussed with the %nion. The &ahyog &amiti, acollection of representatives of non5unionised employees, training programmes in
4apan, 9uality Circles, productivity5lin ed incentive schemes, and an ethos of
discipline and teamwor , all contri!ute to the Maruti culture.
&everal measures of performance have made amply clear that Maruti has esta!lished
a truly healthy wor culture. They have met all project and performance targets
since inception. Their productivity levels are constantly improving. The Company
has had good la!our relations with employees from the very !eginning, and they
have !een successful in the e#port mar et. et, the Maruti culture is one that does
not !elieve in resting on its laurels. They adhere to the spirit of (ai3en, which states
that constant improvement is always possi!le. The most !asic tenet of productivity
that they hold dear is that : Today should !e !etter than esterday and Tomorrow
should !e !etter than Today:.
Maruti %dyog )imited *M%) was esta!lished in ;e! <=>< through an Act of
8arliament, to meet the growing demand of a personal mode of transport caused !y
the lac of an efficient pu!lic transport system.
&u3u i Motor Company was chosen from seven prospective partners worldwide.
This was due not only to their undisputed leadership in small cars !ut also to their
commitment to actively !ring to M%) contemporary technology and 4apanese
management practices *which had catapulted 4apan over %&A to the status of the top
auto manufacturing country in the world .
A licence and a 4oint 0enture agreement was signed !etween -overnment of India
and &u3u i Motor Company *now &u3u i Motor Corporation of 4apan in Oct <=>?.
The o!jectives of M%) then were@
• Moderni3ation of the Indian Automo!ile Industry.
• 8roduction of fuel5efficient vehicles to conserve scarce resources.
•
8roduction of large num!er of motor vehicles, which was necessary foreconomic growth.
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C+, #/0u
• Customer O!session
• ;ast, ;le#i!le and ;irst Mover
• Innovation and Creativity
• etwor ing and 8artnership
• Openness and )earning
#i-i+;
The leader in the India Automo!ile Industry, Creating Customer "elight and
&hareholder s 7ealth A pride of IndiaD
T =.;+0+>i=/0 A!?/;t/>
7e have introduced the superior <E F G +ypertech engines across the entire Maruti
&u3u i range. This new technology harnesses the power of a !rainy <E5!it computer
to a fuel5efficient G5valve engine to create optimum engine delivery. This means
every Maruti &u3u i owner gets the ideal com!ination of power and performance
from his car.
Our other innovation has !een the introduction of 1lectronic 8ower &teering *18&
in select models. This results in !etter and greater maneuvera!ility. In other words,
our cars have !ecome even more pleasura!le to drive.
P,+!u=ti+;@R7D
&pread over a sprawling ?=H acres with fully5integrated production facilities, the
Maruti %dyog 8lant has already rolled out over G. million vehicles. In fact, on an
average, two vehicles roll out of the factory every minute. And it ta es on an
average, just <G hours to ma e a car. More importantly, with an incredi!le range of
<< models availa!le in JK variants, there/s a Maruti &u3u i made here to fit every
car5!uyer/s !udget. And dream.
P,+!u=ti+; Mi0 -t+; -
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<st vehicle produced, "ecem!er <=>
<,KK,KKK vehicles produced !y August, <=>E
J,KK,KKK vehicles produced !y 4une, <==K
<K,KK,KKK vehicles produced !y March, <==G
<J,KK,KKK vehicles produced !y April, <==E
?K,KK,KKK vehicles produced !y Octo!er, <==H
?J,KK,KKK vehicles produced !y March, <===
K,KK,KKK vehicles produced !y 4une, ?KKK
J,KK,KKK vehicles produced !y "ecem!er ?KK<
GK,KK,KKK vehicles produced !y April, ?KK
GJ,KK,KKK vehicles produced !y April, ?KKG
AWARDS
866) um!er one in 4" 8ower &&I for the second consecutive year
um!er one in 4" 8ower C&I for the si#th time in a row 5 the only
car to win it so many times
M>KK, 7agon$ and &wift topped their segments in the T & TotalCustomer &atisfaction &tudy
)eadership in the 4" 8ower Initial 9uality &tudy 5 Alto num!er
one in its
segment for the ?nd time in a row, 1steem num!er one in its
segment forthe rd year in a row, &wift num!er one in the premium compact
segment
7agon$ and 1steem top their segments in the 4" 8ower A81A)
study
T & ran s Maruti Gth in the Corporate $eputation &trength *C&$
study *L< in Auto sector 5;e! KJ Maruti !agged the :Manufacturer of the year: award from Autocar5
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C BC * ?nd time in a row 5;e! KJ
;irst Indian car manufacturer to reach J million vehicles sales
Business 7orld ran s Maruti among top five most respectedcompanies inIndia5Oct KG
Maruti ran ed among top ten *$an H greenest companies in India
!yBusiness Today 5 &ep /KG
8665
Maruti &u3u i was o. < in Customer atisfaction, o. < in &ales
&atisfaction o.< in 8roduct 9uality *1steem and Alto and o. <in 8roduct Appeal *1steem and 7agon $
o. < in Total Customer &atisfaction *Maruti >KK, 'en and Alto
Business 7orld ran ed us among the country/s five most respected
companies
Business 7orld ran ed us the country/s most respected automo!ile
company 0oted Manufacturer of the year !y C BC
0oted one of India/s -reenest Companies !y Business Today5AC
ielson O$-5MA$-
866(
Maruti >KK, Maruti 'en and Maruti 1steem ma e it to the top <K
automotive !rands in :Most Trusted Brand survey ?KK :4 " 8ower ran ed models of Maruti on top@ 7agonr, 'en and
1steem
Maruti >KK and 7agonr top in ;O Total Customer &atisfaction
&tudy ?KK .
M%) tops in 4 " 8ower C&I *?KK< for Gth time in a row 866'
M%) tops in 4 " 8ower C&I *?KK< for ?nd time in a row@ another
international first
8666
Maruti !ags 4" 8ower C&I 5 <st ran uni6ue achievement !y
mar et leader anywhere in the world
'***M&M launched as model wor shop in India achieves highest C&I
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rating.
Central Board of 1#cise Customs awards Maruti with :&amman
8atra:, for contri!ution to e#che6uer and !eing an ideal ta# assesse '**9
CII/s Business 1#cellence Award
'**&Maruti wins I &&A award for :1#cellence in &uggestion
&cheme: Awarded the &tar Trading +ouse status !y Ministry of Commerce
'**54*)
1ngineering 1#ports 8romotion Council/s award for e#port
performance
'**5
Best Canteen award among +aryana Industries as part of employee
welfare
'**84*(
1ngineering 1#ports 8romotion Council/s award for e#port
performance
'**'4*8
1ngineering 1#ports 8romotion Council/s award for e#port
performance
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INDUSTRY PROFILE
Their employees are their greatest strength and asset. It is this underlying philosophy
that has moulded their wor force into a team with common goals and o!jectives.
Their 1mployee5Management relationship is therefore characteri3ed !y@
• 8articipative Management.
• Team wor (ai3en.
• Communication and information sharing.
• Open office culture for easy accessi!ility
To implement this philosophy, they have ta en several measures li e a flat
organi3ational structure. There are only three levels of responsi!ilities ranging from
the Board Of "irectors, "ivision +eads to "epartment +eads. Other visi!le features
of this philosophy are an open office, common uniforms *at all levels , and a
common canteen for all.
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This structure ensures !etter communication and speedy decision ma ing processes.
It also creates an environment that !uilds trust, transparency and a sense of
!elonging amongst employees.
F+, I;? -t+,-%
Maruti %dyog )imited, a su!sidiary of &u3u i Motor Corporation of 4apan, has !een
the leader of the Indian car mar et for a!out two decades. Its manufacturing plant,
located some ?J m south of ew "elhi in -urgaon, has an installed capacity of
,JK,KKK units per annum, with a capa!ility to produce a!out half a million vehicles.
The company has a portfolio of << !rands, including Maruti >KK, Omni, premiumsmall car 'en, international !rands Alto and 7agon$, off5roader -ypsy, mid si3e
1steem, lu#ury car Baleno, the M80, 0ersa, &wift and )u#ury &%0 -rand 0itara
N)H.
In recent years, Maruti has made major strides towards its goal of !ecoming &u3u i
Motor Corporation/s $ and " hu! for Asia. It has introduced upgraded versions of
7agon$ 'en and 1steem, completely designed and styled in5house.
Maruti/s contri!ution as the engine of growth of the Indian auto industry, indeed its
impact on the lifestyle and psyche of an entire generation of Indian middle class, is
widely ac nowledged. Its emotional connect with the customer continues.
Maruti tops customer satisfaction again for si#th year in a row according to the 4.".
8ower Asia 8acific ?KKJ India Customer &atisfaction Inde# *C&I &tudy.
The company has also ran ed highest in India &ales &atisfaction &tudy.
The company/s 6uality systems and practices have !een rated as a :!enchmar forthe automotive industry world5wide: !y A 0 Belgium, glo!al auditors for
International Organisation for &tandardisation.
In eeping with its leadership position, Maruti supports safe driving and traffic
management through mass media messages and a state5of5the art driving training
and research institute that it manages for the "elhi -overnment.
The company/s service !usinesses including sale and purchase of pre owned cars
*True0alue , lease and fleet management service for corporates * ? , Maruti
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Insurance and Maruti ;inance are now fully operational.. These initiatives, !esides
providing total mo!ility solutions to customers in a convenient and transparent
manner, have helped improve economic via!ility of The company/s dealerships.
The company is listed on Bom!ay &toc 1#change and ational &toc 1#change.
M%) is a Board5managed company. Currently the directors on the Board are@
• Mr &hin3o a anishi, Chairman
• Mr 4agdish (hattar, Managing "irector
• Mr +irofumi agao, 4oint Managing "irector
• Mr &hinichi Ta euchi, 4oint Managing "irector
• Mr (inji &aito, "irector *Mar eting and &ales
• Mr Osamu &u3u i, "irector
• Mr $ C Bhargava, "irector
• Mr & 0 Bhave, "irector
• Mr (umar Mangalam Birla, "irector
• Mr Amal -anguli, "irector
• Ms 8allavi &hroff, "irector
• Mr Manvinder &ingh Banga, "irector
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BUSINESS STRATEGY
They intend to continue to focus on the small car segment, while offering products in most segments of the Indian passenger car mar et. They aim to
achieve their principal o!jectives !y pursuing the following !usiness
strategies@
M/i;t/i; /;! ;./;= t. i, :,+!u=t ,/;> % They intend to utili3e &u3u i s
e#pertise in small car technology to produce new variants of their e#isting
models and to upgrade their products with contemporary technology and
features.
I;=, /- , /=. /;! : ; t,/ti+;% They plan to continue to utili3e their
e#tensive sales and service networ to increase the reach, in terms of
geographical spread, and penetration, in terms of sales volumes, of their
products across India.
I;=, /- ! /?/i0/bi0it" +< /ut+m+bi0 <i;/;= % They continue to see
opportunities to e#pand the si3e of the Indian passenger car mar et, especially
in the small car segment, through facilitating easy availa!ility of automo!ile
finance. To that end, they have recently entered into an agreement with the
&tate Ban of India.
S =u, , : /t :u,=./- - b" +<< ,i;> / “(&6 ! >, =u-t+m , 1: ,i ;= ” @
On the !asis of their !elief that securing repeat purchases from an e#isting
customer re6uires less e#penditure than ac6uiring a new customer, they aim to
provide customers with a one5stop shopD for automo!iles and automo!ile5
related products and services.
C+;ti;u t+ b ;=.m/, t. i, m/;u</=tu,i;> =/:/bi0iti -% They plan to
continue to !enchmar our manufacturing capa!ilities with the most efficient
car manufacturing facilities of &u3u i and its su!sidiaries.
C+;ti;u t+ , !u= =+-t- t+ +<< , m+, =+m: titi? :,+!u=t-%
Cost competitiveness has !een, and continues to !e, central to their strategy as
the leading manufacturer in the small car segment to e#pand the si3e of the
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mar et !y offering competitively priced, high 6uality products. The
components of this strategy are@
• +igher levels of locali3ation
• 0endor participation in cost reduction
• Cost reduction on warranties
• $eduction in initial investment cost
• $eduction in num!er of vehicle platforms
• Achieve further cost reduction through higher productivity
L+ , =+-t +< + ; ,-.i:%
Through their !usiness strategies, they see to reduce the consumer s cost of
ownership of their cars, which comprises the cost of purchase, the cost of fuel
and maintenance, including spare parts and repairs, during the life of the
vehicle, insurance, and resale value.
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SALES NETWORK
"ealers@ They offer their products to the customer through a networ of <H>
authori3ed dealers with ?G sales outlets across <E< cities. They !elieve that
this is the largest networ of dealers amongst car manufacturers in India.
Their dealers employed more than ,JKK sales e#ecutives. They are lin ed to
their sales networ through their secure e#tranet5!ased information networ .
The sales of their spares, accessories and automo!ile5related services such as
insurance and finance serve as additional sources of revenue for our dealers.
They !elieve that the availa!ility of these related products and services at
sales outlets also helps to attract customers to the outlets and promotes sales
of their cars.
Agreements with dealers@ They generally appoint a limited num!er of dealers
for a certain geographical territory. Their dealers provide services to
customers such as pre5delivery inspection of vehicles, sales of cars, after sales
service, supply of spare parts and other services that promote sales of cars
within the territory for which they are appointed. They have the right to sell
their products and services through other dealers or intermediaries in any
territory, whether or not one of their dealers is already esta!lished in that
territory. Their dealers are re6uired to maintain their outlets in accordance
with their specifications and employ well5trained sales staff.
Their agreements with their dealers usually have terms of five years. These
agreements are generally renewa!le for successive terms of three years, !y
mutual agreement. The agreements typically permit termination !y either the
dealer or them with si# months prior notice.
1nhancing dealer performance@ Their central office in "elhi, their regional
offices and their area offices monitor and assist their dealer networ . They
have nine regional offices, five area offices and <>H sales and mar eting
personnel. They follow the performance of their dealers and fre6uently
suggest improvements. In order to assist their dealers in enhancing their
performance and capa!ilit ies, they have introduced a concept of Balanced
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&corecardD. %sing this tool, they see to measure the performance of a
dealership in several areas of operations, including sales, service, spares and
accessories, financial management and management systems. They rewarddealers who perform well on the Balanced &corecardD with a cash payment at
the end of the fiscal year. They !elieve that the Balanced &corecardD serves
as an effective incentive for dealers to enhance their performance.
"ealer training@ They have esta!lished standard operating procedures,
showroom am!ience and service 6uality standards for dealerships. They
provide periodic training through their training centres located at their
manufacturing facility and at Chennai, (ol ata, -uwahati and 8une. They
have trained more than ?,EKK and ,GKK dealer sales personnel. Their
su!sidiary, True 0alue &olutions )td., provides value5added services, such as
manpower recruitment and training, to their dealers.
AFTER4SALES SER#ICE
etwor
As on date there are G? Maruti dealer wor shops and <,JGJ Maruti
Authorised &ervice &tations, or MA&&s, covering >=> cities in India. In
addition, ?G5hour mo!ile service is offered in > cities under the !rand
Maruti On5road &erviceD. They intend to e#tend this service to an additional
?J cities over the ne#t three years. As a !enchmar for dealers with respect to
service 6uality and infrastructure facilities, they have launched service
stations under the !rand Maruti &ervice Masters, or M&Ms, in three locations
in India. They have service stations on K highways in India under the !rand1#press &ervice &tationsD.
To promote sales of their spare parts and the availa!ility of high 6uality,
relia!le spare parts for their products, they sell spares under the !rand name
Maruti -enuine 8artsD, or M-8. These are distri!uted through their dealer
networ and through authorised sellers of their spare parts, to whom they refer
as stoc ists.
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Many of their MA&&s are at remote locations where they do not have dealers.
In order to increase the penetration, in terms of sales volumes, of their
products in these remote areas, they are e#ploring opportunities to integratesome of the MA&&s into the sales process in order to increase sales of their
cars and related products and services such as spares and accessories,
insurance and financing.
-enuine Accessories
They have also entered the !usiness of mar eting car accessories under the
!rand name Maruti -enuine AccessoriesD, or M-A, through their dealership
networ . They see to provide customers with the opportunity to customi3e
their vehicles with accessories such as music systems, security systems, car5
care products and utility products.
7arranty and 1#tended 7arranty 8rogram
They offer a two5year warranty on all their vehicles at the time of sale. Their
dealers are re6uired to address any claim made !y a customer, in accordance
with practices and procedures prescri!ed !y them, under the provisions of thewarranty in force at that time. The dealers su!se6uently claim the warranty
cost from them. They analyse warranty claims from dealers and either claim
the cost from vendors, in the case of defective components, or !ear the cost
ourselves, in the case of manufacturing defects.
They offer an e#tended paid5warranty program mar eted under the !rand,
;orever oursD for the third and fourth year after purchase. They have
entered into arrangements with insurance companies to cover the costs ofwarranties offered under this program. The e#tended warranty program is
intended to maintain the dealer s contact with the customer and increase the
revenue generated from sale of spares, accessories and automo!ile5related
services. An effort is made during the period of the e#tended warranty to
encourage the customer to e#change his e#isting Maruti car for a new Maruti
car, or upgrade to a new Maruti car.
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NEW BUSINESS INITIATI#ES
As the largest manufacturer and leader in the small car segment, they continually
see new ways to utili3e their vast car parc, range of products and e#tensive sales
and service networ to e#pand the si3e of the passenger car mar et in India. They
have recently launched new initiatives to develop the mar et for automo!ile
insurance, automo!ile finance, leasing and fleet management, and pre5owned cars.
They aim to provide customers with a one5stop shopD for automo!iles and
automo!ile5related products and services, and !uild on their wide customer !ase and
e#tensive sales and service networ to ma e availa!le to their customers a widerange of Maruti5!randed services at different stages of ownership, which they refer
to as the EK degree customer e#perienceD.
Atit.i D ?+ B./?/% One5stop shop
Inspired !y the spirit of India. Atithi "evo Bhava, in &ans irit, means a guest is
li e -odD. It captures the Indian tradition of honouring guests. It/s also the
inspiration for the welcome you ll receive at a Maruti &u3u i dealership, and the
caring relationship they share with those who drive their cars. At Maruti &u3u i, you
will find all your car related needs met under one roof. 7hether it is easy finance,
insurance, fleet management. services, e#change Maruti &u3u i is set to provide a
single window solution for all your car related needs.
That/s why they have Maruti True 0alue, the !est place to !uy and sell
relia!le used cars. Maruti ;inance an agglomeration of the !iggest finance
companies in India !rought together !y Maruti &u3u i to ensure that the
dream car is within everyone/s reach. &imilarly, Maruti Insurance !rings
together some of the !iggest names in the car insurance industry to provide
insurance solutions to every type of car consumer. Then, finally, there is ? ,
which offers fleet related solutions.
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THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY
H"u;!/i M+t+, I;!i/ Lt!
+yundai Motor India )imited *+MI) is a wholly owned su!sidiary of +yundai
Motor Company, &outh (orea and is the second largest and the fastest growing car
manufacturer in India. +MI) presently mar ets < variants of passenger cars in si#
segments. The &antro in the B segment, -et3 in the BP segment, the Accent in the C
segment, the 1lantra in the " segment, the &onata 1m!era in the 1 segment and the
Tucson and Terracan in the &%0 segment.
The company recorded com!ined sales of ?J?,>J< during calendar year ?KKJ with a
growth of <H.?EQ over year ?KKG. +MI) is India/s fastest growing car company
having rolled5out over =HK,KKK cars in just over >K months since its inception and is
the largest e#porter of passenger cars with e#ports of over $s. <,>KK crores. +MI)
has recorded a growth of ?H.?Q in e#ports over the year ?KKG.
+MI) s fully integrated state5of5the5art manufacturing plant near Chennai !oasts
some of the most advanced production, 6uality and testing capa!ilities in the
country. In continuation of its investment in providing the Indian customer glo!al
technology, +MI) has announced plans for its second plant, which will produce
KK,KKK units per annum, raising +MI) s total production capacity to EKK,KKK per
annum !y ?KKH. The plant will !e !uilt on a ?.< million s6uare meter site adjacent to
the e#isting facility .+MI) is investing to e#pand capacity in line with its
positioning as +MC s glo!al e#port hu! for compact cars. Apart from e#pansion of
production capacity, +MI) plans to e#pand its dealer networ , which will !e
increased from <JH to ?KK this year. And with the company s greater focus on the
6uality of its after5sales service, +MI) s service networ will !e e#panded to over
<,KKK in ?KKE.
The year ?KKJ has !een a significant year for +yundai Motor India. It achieved a
significant milestone !y rolling out the fastest ?KK,KKKthD e#port car. +MI)
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e#ports to around EK countries glo!ally and recently made a foray into the highly
competitive %( mar et !y e#porting its first shipment of >?K cars.
8ropelled !y the strong performance in year ?KKJ, +yundai Motor India is on the
threshold of yet another grand milestone of rolling out its ROne millionth car which
is e#pected soon.
Tata Motors
Tata Motors is one of the largest companies in the Tata -roup with a total
income of %&S ?. J !illion. More than million Tata vehicles ply on Indian
roads ma ing Tata a dominant force in the Indian automo!ile industry.
Tata Motors is India/s only fully integrated automo!ile manufacturer with a
portfolio that covers truc s, !uses, utility vehicles and passenger cars. It
would !e no e#aggeration to say that Tata Motors provides the wheels for
India/s growth.
Tata Motors has the uni6ue distinction of giving India its first and only indigenously
!uilt passenger car 5 The Tata Indica and the premium feature sedan 5 The Tata
Indigo. The Indica, launched in <==>, reached the ?,JK,KKK sales mar within J?
months of launch.
Tata Motors owes its leading position in the Indian automo!ile industry to its strong
focus on indigenisation. This focus has driven the Company to set up world5classmanufacturing units with state5of5the5art technology. 1very stage of product
evolution5design, development, manufacturing, assem!ly and 6uality control, is
carried out meticulously. Their manufacturing plants are situated at 4amshedpur in
the 1ast, 8une in the 7est and )uc now in the orth.
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F+,! I;!i/ Limit !
The ;ord Motor Company has a rich legacy of translating !etter motoring ideas tothe roads. It has manufactured nota!le !rands such as the ;ord, )incoln, Mercury
and the 4aguar. It is among the top five industrial corporations in the world and is
availa!le in more than ?KK countries around the world.
;ord has entered the Indian mar et through a tie 5 up with Mahindra Motors to
manufacture the ;ord 1scort. A project that has !een set up with a investment of
$s.<HKK crore. ;ord India )imited is a su!sidiary of ;ord Motor Company, currently
;ord has a H>Q sta e, which is going up to =?Q soon. The Maraimalai agar 8lant
of ;ord India )imited, located roughly GJ .m.from Chennai, provides employment
to over ?KKKK people.The plant has the capacity to manufacture <,KK,KKK vehicles
per annum, e6uipped with state5of5the5art vehicle manufacturing technology from
;ord.
8resently offering seven different models, ;ord India )imited *;I) is catching up
fast with the Indian consumer. This is secured through a 6uality chec program
!ased on the principles of O0A 5 C * ew Overall 0ehicle Audit 5 Customer
wherein daily random chec s are conducted from a customer/s point of view. To !e
dou!ly sure, routine calls are made to dealerships to chec the 6uality of cars
delivered to them.
At Mahindra/s dealerships are present trained professionals who provide the
!est levels of service in India. Its intensive manpower training, advanced
service e6uipment and dedicated consumer satisfaction are the are its plus points which is !eing followed !y the entire industry.
Ac nowledgement has come in the form of the 4 " power <==H India Initial 9uality
and Customer &atisfaction Awards. These internationally acclaimed and recogni3ed
awards voted the ;ord 1scort as the Best 9uality car and the Mahindra ;ord and its
dealerships were rated the highest in Customer &atisfaction. This is an honour as it
its only the second time in automotive history that the same !rand2manufacturer has
received !oth the awards in the same year.
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G ; ,/0 M+t+,- I;!i/
-eneral Motors India, incorporated in <==G as a JK5JK joint venture company withthe C.(. Birla -roup of Companies, !ecame a fully owned su!sidiary of -M in
<=== when -MOC !ought the remaining shares. The company was restructured in
<=== and was converted from a 8u!lic )imited company to a 8rivate )imited
company. -M A8+ ))C currently holds >E percent of voting shares, and +olden
*Australia holds <G percent. The &8O !usiness was integrated with the main
!usiness in the same company in ?KKK.
In India, -M strengthened its presence with new product launches Chevrolet Optra
in ?KK and Chevrolet Tavera *Multi %tility 0ehicle in ?KKG. &imilarly in ?KKG,
-M India is e#pected to register a growth of =KQ over ?KK . 7ith sales volume
going up, the mar et share of -M India has gone to nearly ?Q. The sales volume in
?KK was <J,<JJ units while ?KKG figure is e#pected to !e around ?H,KKK units. In
?KKG, the company sold a total of ?E,<EE cars as against <J,<JJ cars in ?KK
registering a growth of H Q while overall passenger car growth during the year was
only around ? 5?GQ. These included =<=< Chevy Optras in 1ntry /"/ )u#ury sedan
segment, > E= Opel Corsas and >G<H units of the new generation premium multi5
utility vehicle *M%0 Chevrolet Tavera.
The e#isting -M India plant was originally !uilt !y +industan Motors. In <==G, -M
India entered into a JKQ 4oint 0enture partnership with +industan Motors and
moderni3ed the GJ,KKK5s6uare5meter plant near +alol, GJ ilometers northwest of
0adodara, in the western state of -ujarat. In ;e!ruary, <===, -M !ought theholdings of +indutan Motors and -M India !ecame a <KKQ su!sidiary of -eneral
Motors Corporation of %&A. The plant produces the Opel Corsa, Corsa &ail,
Chevrolet Optra, and Chevrolet Tavera. The Chevrolet ;orester and Opel 0ectra are
sold as CB%s *Completely Built in %nits and as imported from 4apan and -ermany
respectively.
Toyota Motor Corporation is the third largest automa er in the world. They
have G dealers in India and in "elhi they have ? dealers, first one is R&outh
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"elhi Toyota and second one is in Moti agar in which I have visited during
my survey. "ealer in Moti agar which is -ala#y ToyotaD have
predetermined mission that5Customer comes first and everything they do is tomeet their customer needs, !asically they wor for creating a lifetime
customer.
They wor !y dividing their wor li e in one showroom they have separate
teams for every product li e relating to Corolla it comprises of H or >
e#ecutives who handle all the wor weather it is of sale or any en6uiry or
telemar eting call that team must have some specific target to achieve. They
reach to the customers either !y distri!uting )eaflets, Brochures to the
customers. They collect customer data!ase from "irectory * ellow 8ages or
through customer references even they solve customers 6uery online and give
information through e5mails. $ecently they organi3ed one drawing
competition !etween the ids of their e#isting customers just to interact with
the customer and !uild loyalty of their company products. They judge their
customer satisfaction !y analy3ing that repeat !uyers are more or not
moreover they have customer feed!ac form in which they can analy3e
customers !ac ground and can forecast customer future demands. They target
only high profile customers.
They !uild customer loyalty !y giving happy calls to the customer after sale
of every <, ,H month. They provide 8eriodic maintenance schedule, which
will ensure that vehicle, is ept in !est a!le5!odied at all times. The
maintenance schedule may include periodic inspection, adjustment andlu!rication that will eep vehicle in the safest and most efficient condition,
they provide one !oo let in which they give simple and useful tips for
maintenance of the car. They offer good schemes li e providing free Test
"rive worth $s ?JK petrol at the time of sale of any car. They do road shows
to attract customers. To promote their product they organi3e e#change mela,
events, various cash discounts li e currently they are running one discount
scheme on purchase of any of their car *Innova, Toyota they are giving free
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accessories worth $s<JKKK. They provide G free services after sale and with
full clean diesel.
All employees of -ala#y Toyota shall consider how they should act and how
they might change their ways to !enefit the company. They launch one Co
Branded Credit CardD to provide additional !enefits and services to the
Toyota customers. This Credit Card will give Toyota customers a !etter
payment fle#i!ili ty and convenience, li e Customer gets free service voucher
with the card, &pecial Invite to co5sponsored events, 8ersonal accident
insurance coverage@ %p to ?K la hs etc. They have one -uest Boo in which
they store valua!le comments of customers, which they thin are very
important for them, which will help them to improve their service.
HONDA
+onda is one of the leading manufacturers of automo!iles and power products and
the largest manufacture of motorcycles in the world. They have ?K dealers in G?
different cities around India. In ew "elhi they have E dealers, I have visited one ofthem, which is in ajafgarh $oad.
They do surveys to now customers need. They target either e#isting or their
perspective customers !y giving advertisement in the newspaper or through there
satisfied customers which give references. They don t !elieve on targeting
competitor s customers !ecause !y not doing so they have such a !rand reputation
with good 6uality products, only through this they are a!le to ma e good sales.
They display their models in >th Auto 1#po, which held in ew "elhi. They
are now focusing on their new model RCivic . +onda/s Civic perhaps drew the
ma#imum attention. The reason is simple@ Civic is a new car from the house
of +onda. "uring my survey I get to now that +onda City Model is the
second largest selling car in the RC segment. They have a good superiority
with superior !rand name in the country.
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They prefer to have mode of communication with the customer through mail,
telephone and sometimes !y letter. Customers who don t have time even to
see the model or to call the dealer to ma e in6uiries a!out their reservationthey desire to solve their 6uery online itself.
To judge customer satisfaction they some times invite their customers to have a get
together, to have interaction with customer in a minute to now that are they
satisfied with their services and what they are e#pecting from them in the near
future. They ma e ma#imum of their sales from the fresh customers rather than their
repeat purchasers. To increase their sales they try to e#tort surreptitious information
from the customers and on their end they aim to ensure that the product 6uality and
product 6uantity should !e availa!le in re6uired 6uantity in their dealership.
They have ;eed!ac form in which they ta e feed!ac of the customer as well as
their salesperson !ecause through this they are a!le to get the information of !oth
the customer their salesperson that are they giving the full information to the
customer. This "ealership even provide technical s ills and techni6ues to their
employees that how to deal with the customer thoughtfully every after E months.
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NEED FOR CRM IN AUTOMOBILE INDUSTRY
The glo!al automotive industry e#hi!its most of the characteristics of mature
industries and closely follows their !usiness cycles. 7hile vehicle industry sales
have !een strong for the past several years, they have started to slow recently due to
the current glo!al economic slowdown. "eteriorating economic conditions result in
a drop in consumer confidence, which 6uic ly impacts automotive sales due to their
!ig5tic et status and the relative low cost of e#tending the life of an e#isting vehicle
through maintenance and repair.
The advent of the Internet as a research tool *HJ to >K percent of auto consumers
research using the Internet has shifted power to consumers, further increasing
pressure on prices. At the same time, government regulation and consumer demands
for sophisticated features have increased development, production, and mar eting
costs. $egional economic fluctuations favor consolidation among car companies,
suppliers, and retailers 5resulting in fewer, larger companies that have more
complete product lines targeted at e#isting and new mar ets. Consolidation hasheightened competition in all vehicle segments. )ow5cost manufacturers are
e#panding !eyond their home mar ets with entry level vehicles, traditional
passenger car manufacturers are e#panding into the light truc mar ets, and lu#ury
manufacturers are moving down mar et with passenger cars and &%0s. As a result
of these product and mar et e#tensions, consumers find it difficult to e#hi!it !rand
loyalty !ecause vehicles have unclear !rand identities, similar features, and
compara!le prices. In addition, an overpopulation of dealers has resulted in local and
regional competition among same ma e dealers. This further reduces margins and
damages the !rand images the car companies spend large amounts of money to
!uild.
$elations !etween the car companies and their suppliers traditionally have !een
difficult. In response to competitive pressure, suppliers have !een forced !y the car
companies to provide higher56uality components at constantly lower costs. The
resulting decrease in margins and the reduction in volume due to slowing sales have
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increased the pressure to consolidate and forced some suppliers to the !rin of
!an ruptcy. "ealers too have a long history of adversarial relationships with the car
companies. Independent entrepreneurs who view some of the car companies withs epticism or serious mistrust, dealers !elieve that many manufacturer5sponsored
customer satisfaction programs are actually designed to force smaller dealers out of
!usiness or to gain control of customer relationships that the retailers !elieve they
:own.:
These difficult relationships have prevented car companies and dealers from
ma#imi3ing the lifetime value of their com!ined customers. There are few
incentives or efficient methods for dealers and car companies to share critical data,
resulting in ineffective management of product, service, and household information.
In addition, consumers receive conflicting mar eting communications from the two
groups, which results in reduced !rand value.
KEY INDUSTRY PAIN POINTS
• D =, /-i;> -/0 - /;! m/, t -./, 5 The long5term !attle for mar et
share continues to intensify. In the mature automotive industry, where
!usiness cycles drive sales fluctuations, mar et share is critical to
survival. Consumers are less !rand5loyal than in the past, and every
mar et segment has an increasing num!er of vehicle choices. To
increase sales and gain ground in the mar et share !attle, companies
must improve their a!ility !oth to ac6uire first5time customers and to
develop customer loyalty to their current !rands. To achieve theserelated o!jectives, companies must set an aggressive goal 5deliver the
!est cus tomer e#perience in the automotive industry.
• Di<<i=u0t ! /0 , , 0/ti+;-.i:- /;! / 0/= +< ! /0 , =+00/b+,/ti+; 5
As the consumer /s primary touch point ,the dealer networ is a critical
component of customer5facing operations. Therefore, the integration of
the dealer networ is a!solutely essential to improving the 6uality of
the customer e#perience. Only with an infrastructure that ena!les theeffective flow of information to and from dealers can companies create
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a complete view of their customers. Car companies must ta e the
initiative in understanding the customer /s perspective throughout the
!uying cycle.
• L/= +< mu0ti=./;; 0 =/:/bi0iti - 5 7ith the advent of the Internet as
a research tool, the majority of customers are accessing the automotive
enterprises through several different channels. Many times, the switch
!etween channels happens very rapidly as a prospect or customer can
view a 7e! site, ma e a phone in6uiry, and visit a retail store within
days or even hours of an initial contact. To improve customer
satisfaction and secure customer lifetime value, companies must !e
a!le to capture these multiple interactions, provide seamless
management !etween channels, and leverage shared customer
information to create rewarding e#periences and to develop and
e#ecute highly targeted mar eting campaigns.
• I; <<i=i ;t ! m/;! =./i; :0/;;i;> /;! .i>. /--+=i/t ! IT =+-t 5Cost reduction is an ongoing competitive re6uirement. 4ust as supply
chain management must !e supported !y a sophisticated information
infrastructure, effective demand chain management also re6uires the
right supporting infrastructure, ena!ling car companies to fully
leverage each customer relationship through e#ceptional customer
service, efficient lead generation and management, and effective
promotions and campaigns. In addition, glo!al automotive enterprisesoperate a wide variety of IT systems in their various !usiness units and
functional groups. $ationali3ing these systems offers significant cost
savings.
• L/= +< << =ti? i;<+,m/ti+; -./,i;> 5 Car companies must integrate
glo!al operations in order to achieve the !enefits of consolidation 5cost
reduction, effective communication, and true integration of core
competencies. In addition, internal alignment !etween !usiness units
and functional groups is re6uired to create a unified view of
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consumers, products, and services. Currently, each !usiness unit,
functional group, and !rand operates through independent systems,
programs, and touch points. As a result, there is limited synergy acrossthe ecosystem, leading to significant inefficiencies, lac of
coordination, and most important, an ina!ility to ma#imi3e :share of
wallet :from every customer through well5targeted mar eting and
cross5selling. &ynergy !etween traditionally independent !usiness units
such as captive finance companies and !etween functional groups such
as sales, service, and mar eting is more critical now than ever !efore.
Only !y sharing customer information can customer lifetime value !ema#imi3ed among different groups.
• C+m:0 1 !/t/ >+? ,;/;= , ui, m ;t- 5 -lo!al automotive
enterprises have large, comple# information technology ecosystems.
7hile customer information must !e shared within this ecosystem in
order to fully ma#imi3e glo!al operations, it must also !e protected.
8roper management of customer information re6uires a sophisticated
capa!ility to manage a variety of access rules and to accommodatelegal restrictions that can change very 6uic ly. The trust re6uired for
successful colla!oration !etween groups in the automotive enterprise
must !e !uilt !y demonstrating that customer information can !e
shared while o!serving these comple# re6uirements.
• Di<<i=u0t" m/;/>i;> m:0+" , 0/ti+;-.i:- 5 In today /s fast5paced
!usiness environment, automotive companies need to ensure that their
most valua!le asset 5their employees 5have immediate access to the
critical information, services, and applications re6uired to !e
productive. Organi3ations must ena!le employees to ma e !etter
decisions, wor colla!oratively, enhance customer relationships, and
ma#imi3e productive time. -lo!al automotive enterprises must !e a!le
to enact and enforce consistent policies across !usiness units, instill a
common corporate culture across a geographically dispersed and
diverse wor force, e6uip employees with effective search tools to
access corporate nowledge !ases, and provide employees with the
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training necessary to service customers in a volatile and demanding
mar et.
T/,> t M/, ti;> P,+= !u, O< #/,i+u- C+m:/;i -
TARGET SEGMENT
T+ , /=. t+ ,u,/0 /;! 0+ , mi!!0 =0/-- =+;-um ,-$ T. " b >i; it.
-m/00 =+;= ;t,/t ! m/, t- /:: /0i;> t+ 0+=/0 =u0tu, /;! /-:i,/ti+;- +<
t. t/,> t ! /, /
STRATEGY
THEIR STRATEGY IS TO CAPTURE THE RURAL MARKET BY
EMPLOYING WOMEN WHO BELONG TO THEIR LOCAL
COMMUNITY THROUGH WHICH THEIR PRODUCT CAN REACH
TO LOCAL CONSUMERS$ THEIR STRATEGY IS TO PRO#IDE
WORK FOR WOMEN TO CREATE AWARENESS AMONGCONFINED CONSUMERS
P,+= --
They started with 8roject &ha ti in which their !asic aim is to educate a rural person a!out
their products through women who !elongs to their own local community and who can
communicate well in their language with them. In this way many educated women get
wor in rural sector and on the other hand +)) Corporate &ocial $esponsi!ility *C&$
also increases towards society !y introducing educative programs for the !enefit of the
rural sector
M+! +< C+mmu;i=/ti+;
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They reach to customers !y giving advertisements in the T.0. or through radio,
through wall painting, or through promotional activities li e wea ly haats, mela or
local !a3aars and most importantly, their policies were fle#i!le and they couldadapt to fast changing mar eting situations.
Through Internet, 15mail usage, communication media li e telephone and mail facility
this mode of communication is possi!le to a great e#tent. ITC s e#tensive India5
wide distri!ution networ ena!les its greeting cards reach over '8 666 multi !rand
outlets in over HKK cities across the country. In the last three years '6 666 greeting
card designs have reached these outlets with the help of ITC/s we!5ena!led e5
commerce model Communication Model ITC mar ets
O::+,tu;it"
These days consumers are loo ing for convenience and instant gratification.
Communication media li e the telephone and e5mail facilitate
communication to a great e#tent. But many greeting card sites are moving
from a /free/ to a /pay/ mode. This could !e an emerging revenue earningopportunity for content providers.
T., /t-
/1#pressions/ which is a competitor of ITC in this segment is currently the second
!iggest greeting card !rand in India with a mar et share of ?K per cent. ITC has a
five per cent share in the stationery mar et. The greeting card mar et in India is
estimated to !e around $s. ?JK crore in terms of yearly consumer spent. The
unorgani3ed sector in the greeting card mar et will !e close to GK per cent. The
organi3ed sector, controlling EK per cent of the mar et, is divided !etween ITC,
Archie s and +allmar . 7hile Archie s has licensing agreements with international
greetings !rands
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COMPETITI#E STRENGTHS OF MUL
M%) !elieves that they are well positioned to maintain and enhance their leadership
position in the small car segment in India, while continuing to offer products in most
segments of the Indian mar et, on account of their competitive strengths, which
include the following@
E1: ,ti- i; -m/00 =/, t =.;+0+>"% As a su!sidiary of &u3u i, they have
access to glo!ally respected technology in the small car segment. They have
the advantage of &u3u i s e#pertise in all aspects of small car technology and
design, with respect to their products, their manufacturing processes and
!usiness practices, the development of their supply chain and the training of
their personnel.
E1t ;-i? :,+!u=t :+,t<+0i+% Their diverse product range includes cars in
segments A, B and C, and utility vehicles. They manufactured five out of the
ten models that were sold in the com!ined A and B segments in India in fiscal
?KK?. They are the only manufacturer of cars in segment A *priced !elow
$s. KK,KKK where they have two models, the Maruti >KK and the Omni. The
Maruti >KK has !een the largest selling car in India for several years, and
continued to have the highest sales volumes of any model, with a mar et share
of ?J. Q. The Omni, a versatile vehicle that can seat more passengers than
the Maruti >KK or !e used as an am!ulance or cargo vehicle, had a mar et
share of <K.JQ in fiscal ?KK?. They are also the only manufacturer to sell
three distinct models, the 'en, the Alto and the 7agon $, in segment B
*priced !etween $s . KK,KKK and $s.JKK,KKK . They !elieve that
theirdominance in segment A and e#tensive product range in segment B
ena!les us to offer the customer a wider choice in the small car segment than
any of their competitors. In addition, the a!sence of other manufacturers in
segments A gives their dealers greater fle#i!ility in promoting models in
segment B.
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Qu/0it" :,+!u=t-% In ovem!er ?KK<, they were one of the first automo!ile
manufacturers in the world to receive the I&O =KK<@?KKK certification. They
!egan to e#port products in <=>>, primarily in order to !enchmar our products against international 6uality standards. They have e#ported products
to appro#imately HK countries, including countries in 7estern 1urope. Their
products for e#port are manufactured using the same assem!ly line as our
products for the domestic mar et.
E1t ;-i? -/0 - /;! - ,?i= ; t +, % They !elieve that they have the largest
networ of dealers and service centers amongst car manufacturers in India. As
of March <, ?KK , we had <H> authori3ed dealers with ?G sales outlets in
<E< cities. They estimate their car parc to !e in e#cess of .J million vehicles.
To service this car parc, at March <, ?KK , they had G? dealer wor shops
and <,JGJ Maruti Authori3ed &ervice &tations, or MA&&s, which covered >=>
cities in India !ac ed !y 1#press &ervice Centers on K highways across the
country. In addition to the distri!ution of their cars, their dealership networ
is a critical resource in our efforts to provide customers with a one5stop
shopD for automo!iles and automo!ile related products and services such asautomo!ile finance, automo!ile insurance, Maruti5certified pre5owned cars
availa!le for purchase, and leasing and fleet management, in order to promote
customer loyalty.
B,/;! -t, ;>t.% They have !een present in the Indian mar et for almost
twenty years and have !uilt their !rand on the !asis of the values of trust and
relia!ility. Most of their principal competitors have !een present in the Indian
passenger car mar et for a significantly shorter period. Certain manufacturershave ceased to manufacture certain products shortly after introducing them, or
have left the mar et altogether. In contrast, they continue to support the
maintenance of their products. This has contri!uted to the strength of their
!rand. In ?KKK, ?KK< and ?KK?, 4. ". 8ower Asia 8acific, Inc. ran ed us o. <
in the India Customer &atisfaction Inde#, which assesses customer satisfaction
with product 6uality and dealer service. They !elieve that this was the first
time that a volume leader in the automo!ile industry anywhere in the worldwas ran ed first on the 4" 8ower Customer &atisfaction Inde#. ;O
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Automotives ?KK? Total Customer &atisfaction &urvey ran ed Maruti
products as o. < in the 1conomyD, 8remium CompactD and 1ntry
Midsi3eD segments respectively, for ?KK?.
I;t >,/t ! m/;u</=tu,i;> </=i0it"% Their manufacturing facility comprises
three integrated plants with fle#i!le assem!ly lines located at -urgaon in the
northern state of +aryana. Their facility has advanced engineering capa!ility
and each plant is upgraded on an ongoing !asis to improve productivity and
6uality. As a result, their first plant set up in fiscal <=>G is technologically at
par with their newer plants and is also used in the production of their new
models. They !elieve that they are one of the most efficient among the vehicle
manufacturing facilities of &u3u i s su!sidiaries outside 4apan in terms of
productivity measured as the ratio of num!er of vehicles produced to num!er
of employees. They have an installed capacity of JK,KKK vehicles per year,
which is the highest among passenger car manufacturers in India and among
the passenger car manufacturing facilities of &u3u i s su!sidiaries outside
4apan. They have consistently produced in e#cess of their installed capacity in
the five fiscal years ended March <, KK?.
They !elieve that they would !e a!le to e#pand their production to JKK,KKK
cars per year with minimal additional capital e#penditure. This would ena!le
them to !enefit from significant economies of scale.
St,+;> ? ;!+, b/- /;! .i>. , ,/t - +< 0+=/0i /ti+;% They wor closely
with their vendor !ase for the supply of raw materials, components and spare
parts of their products. In order to improve 6uality and generate economies of
scale, they have reduced the num!er of their vendors of components in India
from HK as of March <, ?KKK to ?== as of March <, ?KK , and intend to
continue to reduce the num!er of our vendors. << of their vendors at March
<, ?KK were in technical colla!oration with foreign entities. As of the same
date, we had strategic e6uity interests through joint venture agreements in <
of their vendors, who together supply a su!stantial portion of their purchases
of components. A num!er of their vendors are their dedicated suppliers in that
they account for a majority of their turnover. 0endors located within a radius
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of <KK ilometers from their facility supply the majority of their components.
The production systems of their vendors are generally aligned to their need
for a relia!le and timely supply of components that meet their 6ualityre6uirements. This has ena!led them to increase the proportion of locally
sourced, lower cost components in their models, a concept they refer to as
localisation. They have !een a!le, in colla!oration with their vendors, to
increase the rate at which they are a!le to localise production of their new
models over time. This has helped them reduce the cost of their components.
& illed la!our and e#perienced management@ Thei highly s illed la!our force
has !ecome increasingly productive in terms of vehicles produced per
employee and receives training on an ongoing !asis, including training !y
&u3u i. As of March <, ?KK , <,=KK of their employees had !een trained at
&u3u i s facilities in 4apan. They have !een present in the Indian passenger
car mar et for a significantly longer period than most of their principal
competitors. As a result, they have !een a!le to !uild a highly e#perienced
management team that is familiar with conditions in the Indian passenger car
mar et. ;or instance, their managing director has almost ten years ofe#perience with them, and most of the heads of their divisions have more than
<J years of e#perience with them.
Capital resources@ They have cash and !an !alances and current investments
amounting to $s.=,==? million. As of the same date, they had relatively low
levels of outstanding inde!tedness, in the amount of $s.G,JJJ million. As a
result, they have relatively low interest e#pense and fle#i!ility to raise funds,
if necessary, for their wor ing capital and capital e#penditure in the future.
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COMPANY PROFILE
T. Qu/0it" A!?/;t/>
A car is an engineering product, only as good as the technology used to ma e
it. Actual users of our technology are saying something very clearly Maruti
&u3u i is o.< in 6uality@
Maruti &u3u i owners e#perience fewer pro!lems with their vehicles than any other
can manufacturer in India *4.". 8ower I9& &tudy ?KKG . The Alto was chosen o.<
in the premium compact car segment and the 1steem in the entry level mid5si3e car
segment across = parameters.
The 4.". 8ower A81A) &tudy ?KKG proclaimed the 7agon $. o. < in the
premium compact car segment and the 1steem o.< in the entry level mid5
si3e car segment. This study measures owner delight in terms of design,
content, layout and performance of vehicles across > parameters.
Maruti &u3u i has a sales networ of KH state5of5the5art showrooms across
<>= citiesF, with a wor force of over EKKK trained sales personnel to guideour customers in finding the right car. Our high sales and customer care
standards led us to achieve the o.< nameplate in the 4.". 8ower &&I study
?KKG. The &&I study measures sales satisfaction across E parameters@ deal
received, paperwor , dealer facility, salesperson, delivery timing and delivery
process. Maruti &u3u i has not only got the o.< nameplate in the 4." . 8ower
&&I study ?KKG, !ut also ran ed way a!ove the industry average *Maruti
&u3u i was at H>G while industry average was at HEK . 7hat is significant isthat it was ran ed a!ove & oda, ;ord, Chevrolet, Mitsu!ishi and +yundai.
To !e really happy with the car you own, it should have a relia!le service
networ at hand and within easy reach. Their <K E city strong service
networ is e6uipped to service ?K,KKK vehicles a day. o wonder Maruti
&u3u i has !een awarded the o.< nameplate in customer satisfaction in India
for the fifth year in a row, a feat unprecedented for any automo!ile mar et
leader in the world.
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In the 4.". 8ower C&I study ?KKG, Maruti &u3u i scored the highest across all
H parameters@ least pro!lems e#perienced with vehicle serviced, highest
service 6uality, !est in5service e#perience, !est service delivery, !est in5service e#perience, most user5friendly service and !est service initiation
e#perience.
In fact, =?Q of Maruti &u3u i owners feel that wor gets done right the first time
during service. The 4.". 8ower C&I study ?KKG also reveals that =HQ of Maruti
&u3u i owners would pro!a!le recommend the same ma e of vehicle, while =KQ
owners would pro!a!le repurchase the same ma e of vehicle.
A Bu"i;> E1: ,i ;= Li N+ Ot. ,
Maruti &u3u i has a sales networ of KH state5of 5the5art showrooms across <>=
cities, with a wor force of over EKKK trained sales personnel to guide our customers
in finding the right car. Our high sales and customer care standards led us to achieve
the o.< nameplate in the 4.". 8ower &&I &tudy ?KKG.
Qu/0it" S ,?i= A=,+-- '6(& Citi -
In the 4.". 8ower C&I &tudy ?KKG, Maruti &u3u i scored the highest across all H
parameters@ least pro!lems e#perienced with vehicle serviced, highest service
6uality, !est in5service e#perience, !est service delivery, !est service advisor
e#perience, most user5friendly service and !est service initiation e#perience.
=?Q of Maruti &u3u i owners feel that wor gets done right the first time during
service. The 4.". 8ower C&I study ?KKG also reveals that =HQ of Maruti &u3u i
owners would pro!a!ly recommend the same ma e of vehicle, while =KQ ownerswould pro!a!ly repurchase the same ma e of vehicle.
O; St+: S.+:
At Maruti &u3u i, you will find all your car related needs met under one roof.
7hether it is easy finance, insurance, fleet management services, e#change5 Maruti
&u3u i is set to provide a single5window solution for all your car related needs.
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T. L+ C+-t M/i;t ;/;= A!?/;t/>
The ac6uisition cost is unfortunately not the only cost you face when !uying a
car. Although a car may !e afforda!le to !uy, it may not necessarily !e
afforda!le to maintain, as some of its regularly used spare parts may !e priced
6uite steeply. ot so in the case of a Maruti &u3u i. It is in the economy
segment that the afforda!ility of spares is most competitive, and it is here
where Maruti &u3u i shines. The recent Auto car &urvey conducted in August
?KKG !ears testimony to this fact. In the Maruti &u3u i sta!le, the Omni has
the lowest aggregate cost of spares followed !y the Maruti5>KK. The Maruti5
>KK has the cheapest spares of any Indian car with a !as et of just $s. ? ,G??.
In the )ower Mid5si3e segment as well, price5consciousness is very high,
where the cars have to !e not only afforda!le on purchase price !ut also need
to com!ine 6uality, driva!ility and have comforta!le interiors. In this
segment, the Maruti &u3u i 0ersa has scored particularly well with the lowest
cost of spares in the segment. In the %pper Mid5si3e segment, the Maruti
&u3u i Baleno has the segment/s lowest prices on a majority of the spares.
L+ -t C+-t +< O ; ,-.i:
To !e really happy with the car one owns, it should !e easy on the poc et to
!uy and to run5which is why the cost of ownership is so important. And here
again, a Maruti &u3u i is a clear winner, as shown !y the recent 4.".8ower
C&I study ?KKG. It is clear that a Maruti &u3u i delights you even when you
run it for years. The E highest satisfaction ratings with regard to cost of
ownership among all models are all Maruti &u3u i vehicles@ 'en, 7agon $,1steem, Maruti >KK, Alto and Omni. They are proud to have the lowest cost of
operation 2 m *among petrol vehicles 5 the top J models are all Maruti
&u3u i models@ Maruti >KK, Alto, 'en, Omni and 7agon $.
Em:0+" Qu/0it" M /-u, -
(ai3en is !ased on the concept of ma ing incremental improvements in our
products. It incorporates a series of continuous small and simple improvements,which aim at involving employees at all levels.
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The &uggestion &cheme is !ased on the same principle. %nder this scheme,
employees are encouraged to ma e suggestions for improvement in any area of our
operation. Over JK,KKK suggestions are received from employees every year.
Maruti has won the ;irst place in E1= 00 ;= i; Su>> -ti+; S=. m C+;t -t
866( , which is the Eth consecutive award won in as many years. This contest is
organi3ed !y Indian National Suggestion Schemes Association *I &&A . &ince
<==> Maruti has won this award <K times.
:9uality Circles: are groups of five to eight mem!ers from a particular wor area
who wor as a team to identify priorities and solve wor related pro!lems in the
area.
7e !elieve that it is this unwavering commitment to 6uality that will lead to the
further growth of the organi3ation as competition increases.
ISO *66'%8666
At Maruti, our approach to 6uality is in eeping with the 4apanese practice55:!uild it
into the product:. Technicians themselves inspect the 6uality of wor . &upervisors
educate and instruct technicians to continually improve productivity and 6uality.
The movement of 6uality indicators is reviewed in wee ly meetings !y the top
management.
I; 866' M/,uti U!"+> Lt! b =/m +; +< t. <i,-t /ut+m+bi0 =+m:/;i -
/;" . , i; t. +,0! t+ > t /; ISO *666%8666 = ,ti<i=/ti+;$ A0 Belgium,
glo!al auditors for International Organi3ation for &tandardisation*I&O , certified
Maruti after a four day long audit, covering varied parameters li e Customer
;ocussed organisation, )eadership, Involvement of people, 8rocess approach,
&ystem approach to Management, Continual improvement, etc.
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I; M/" '**) M/,uti >+t ISO *668 = ,ti<i=/ti+;$ The audit for this covered
6uality assurance in production, installation, mar eting and sales as well as after
sales services. 7e were also one of the first companies in the world to pioneer I&O
=KKK certification for our dealers.
I; O=t+b , '**( MUL :/-- ! t. C+;<+,mit" O< P,+!u=ti+; COP Au!it
.i=. i- b/- ! +; / Eu,+: /; U;i+; Di, =ti? $ This authenticated our 6uality
systems and testing facilities for e#port to 1urope.
Their emphasis on total 6uality has meant that today they are in a position to guide
vendors and dealers in esta!lishing and consolidating their individual 6uality
systems. This commitment to 6uality has ensured a consistently satisfying product
and world5class sales and after5sales services.
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TS'&*5*%8668 4 A new feather was added recently in Maruti s cap in the field of
6uality when the 9uality Management &ystem of its 8ress &hop associated
functions *collectively termed as 8ress ;unction got certification for conformanceto the re6uirements of T&<E=G=@?KK? standard.
The need for T& certification of 8ress ;unction had its genesis in the prestigious
project that Maruti earned for the supply of stamped panels to -eneral Motors India
for one of its forthcoming models.
As a part of 9uality system re6uirements, -M re6uires all its suppliers to !e
certified to either I&O T& <E=G= or 9& =KKK.
These standards address 9uality &ystem re6uirements, which are particularly
specific to the automotive industry and re6uires an organi3ation to !e in compliance
with I&O =KKK systems as a !asic re6uirement. +owever, whereas 9& =KKK would
!ecome defunct and cease to e#ist after "ec ?KKE, T& <E=G= is going to !e the
standard of the future.
The T& <E=G= standard, !rought out !y I&O in the year <===, is an e#tension of the
I&O =KK<@?KKK standard that prescri!es 9uality management system re6uirementsthat are specifically applica!le to the automotive industry.
T& <E=G= has gained high popularity and almost all major automo!ile players across
the glo!e including -M, ;ord, "aimler Chrysler, issan, +onda are em!racing
promoting it.
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ISO *66'%8666
THEORITICAL PERSPECTI#E
C+;-um , i- strictly, the ultimate consumer of a product, the ultimate user of a
product the person who derives the satisfaction or the !enefit offered. The
/consumer/ is not necessarily the customer, since there are often /customers/ in the
!uying2 distri!ution chain moreover, the consumer is fre6uently not the person who
ma es the !uying decision for instance, in the case of many household products,
where the housewife may ma e the purchase !ut consumption or use is !y the wholefamily. /Consumer/ is not normally applied to the purchase of industrial goods and
services where the customer is usually a corporate !ody. evertheless, consuma!le
goods are sold to industry for corporate purposes and the consumers of these goods
can !e identified for mar eting practice.
C+;-um , b ./?i+, i- the study of !uying ha!its or patterns of !ehaviour of
consuming pu!lic either in general or in specific groups.
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THE BUYING PROCESS
The comple#ity inherent in understanding consumer !ehaviour has led to the
construction of models of the !uying process which indicate the stages
through which the consumer passes from the time he or she first !ecomes
aware of a need for a product or service to the time when a product is
purchased, a !rand selected, and the consumer evaluates the success of his
purchase decides whether to !uy that particular product and 2 or !rand again.
It the same time, such models usually indicate the social and psychologicalforces which shape the potential !uyer/s action at each stage in the process.
The two principal aims of such model !uilding are the prediction of future
!ehavior !ased on measurement of relevant varia!le and the e#planation of
this !ehavior in terms of theoretically relevant constructs.
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The starting point for understanding the !uyer is the stimulus5response model
shown !elow
M/, ti;>-timu0i
Ot. , -timu0i Bu" , -C./,/=t ,i-ti=-
Bu" , - ! =i-i+;:,+= --
Bu" , - ! =i-i+;-
8roduct
8rice
8lace
8romotion
1conomic
Technological
8olitical
Cultural
Cultural
&ocial
8ersonal
8sychological
8ro!lemrecognition
Information search
1valuation decision
8ost5purchase !ehavio r
8roduct choice
Brand choice
"ealer choice
8urchase timing
8urchase amount
St/> - i; Bu"i;> D =i-i+; P,+= --
eed
recognitio
n
Informatio
n search
1valuation of
alternatives
8urchase
decision
8ost5
purchase
!ehavior
The consumer passes through five stages @ Problem recognition information
search, evaluation of alternat ives purchase decision and post-purchase
behavior. Clearly the !uying process starts long !efore the actual purchase
and has conse6uences long after the purchase.
This model implies that consumers pass through all five stages in !uying a
product. But this is not the case, especially in low5involvement purchase.
Consumers may s ip or rreverse some stages. Thus a woman !uying her
regular !rand of toothpaste goes directly from the need for toothpaste to the
purchase decision, s ipping information search and evaluation. +owever, we
have already used the model in a!ove, !ecause it captures the full range of
consideration that arise when a consumer facer a highly involving new
purchase. 7e will allude again to )inda Brown and try to understand how she
!ecame interested in !uying a laptop computer and the try to understand how
she !ecame interested in !uying a laptop computer and stages she wentthrough to ma e her final choice.
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MAJOR FACTORS INFLUENCING BUYING
BEHA#IOR
Cu0tu,/0
S+=i/0
Culture
&u!culture
&ocial Class
$eference group
;amily
$oles andstatuses
P ,-+;/0
Age and life5cycle stage
Occupation
1conomiccircumstances
)ifestyle
8ersonality andself5concept
P-"=.+0+>i=/0
Motivation
8erception
)earning
Beliefs andattitudes
Bu" ,
R+> ,- m+! 0 <+, t. /!+:ti+; /;! !i<<u-i+; +< i;;+?/ti+;- I;;+?/ti+;
A!+:ti+; CUR#E
The i;;+?/ti+; /!+:ti+; =u,? of R+> ,- is a model that classifies adopters of innovations into
various categories, !ased on the idea that certain individuals are inevita!ly more open to adaptation than
others. Is is also referred to as Mu0ti4St : F0+ T. +," or Di<<u-i+; +< I;;+?/ti+;- T. +," .
I;;+?/t+,-
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Brave people, puling the change. Innovators are very important communication.
E/,0" A!+:t ,-
$especta!le people, opinion leaders, try out new ideas, !ut in a careful way.
E/,0" M/ +,it"
Thoughtful people, careful !ut accepting change more 6uic ly than the average.
L/t M/ +,it"
& eptic people, will use new ideas or products only when the majority is using it.
L/>>/,!-
Traditional people, caring for the :old ways:, are critical towards new ideas and will only accept it if the
new idea has !ecome mainstream or even tradition.
The !i<<u-i+; +< i;;+?/ti+;- =u,? *innovation adoption curve of $ogers is useful to remem!er thattrying to 6uic ly and massively convince the mass of a new controversial idea is useless. It ma es more
sense in these circumstances to start with convincing innovators and early adopters first. Also the
categories and percentages can !e used as a first draft to estimate target groups for communication
purposes.
Di<<u-i+; , - /,=. <+=u- was on five elements@ < the characteristics of an
innovation which may influence its adoption ? the decision5ma ing process that
occurs when individuals consider adopting a new idea, product or practice the
characteristics of individuals that ma e them li ely to adopt an innovation.
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TARGET MARKETING
T/,> t M/, ti;> involves !rea ing a mar et into segments and then concentrating
your mar eting efforts on one or a few ey segments.
The !eauty of target mar eting is that it ma es the promotion, pricing and
distri!ution of your products and2or services easier and more cost5effective. Target
mar eting is the selection of customers you wish to service. The decisions involved
in it are
• 7hich segments to target
• +ow many products to offer
• 7hich products to offer in which segments
There are three steps to targeting@
• Mar et segmentation
• Target choice
• 8roduct positioning
One of the first things you need to do is to refine your product or service so that youare OT trying to !e /all things to all people .
e#t, you need to understand that people purchase products or services for three
!asic reasons@
• To satisfy !asic needs.
• To solve pro!lems.
• To ma e themselves feel good.
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The ne#t step in creating an effective mar eting strategy is to 3ero in on your target
mar et.
Target mar eting is one of corporate America/s most effective !usiness strategies.
The idea is to increase sales !y first identifying, and then targeting smaller, yet more
profita!le customer groups within the total mar et.
F+u, W/"- t+ I! ;ti<" T/,> t M/, t-
<. G +>,/:.i=% The location, si3e of the area, density, and climate 3one
of your customers.?. D m+>,/:.i=-% The age, gender, income, family composition and si3e,
occupation, and education of your customers.
. P-"=.+>,/:.i=-% The general personality, !ehavior, life5style, rate of
use, repetition of need, !enefits sought, and loyalty characteristics of
your customers.
G. B ./?i+,-% The needs they see to fulfill, the level of nowledge,
information sources, attitude, use or response to a product of yourcustomers.
One of the !est ways to identify your target mar et is to loo at your e#isting
customer !ase. 7ho are your ideal clientsU 7hat do they have in commonU If you
do not have an e#isting customer !ase, or if you are targeting a completely new
audience, speculate on who they might !e, !ased on their needs and the !enefits they
will receive. Investigate competitors or similar !usinesses in other mar ets to gain
insight.
TARGET MARKETING
• 7ho are your !est customersU 7here should you direct your mar eting
activitiesU
• 7here and how should you allocate your advertising and promotionaleffortsU
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Target Mar eting, provides Focus for your !usiness. It helps to esta!lish
critical Operational goals and defines what must !e done to achieve them
W./t Cu-t+m ,- W/;t
• Mar eting is more than an activity, it is an attitude
• Instead of trying to get customers to !uy what the firm li es to ma e,
or happens to have on hand, the mar eting oriented firm tries to
produce or sell what its customers want which can be sold at a profit.
• "o not simply throw out everything that you now have and replace goods or
production machinery with completely new items.
• HOWE#ER AS YOU ANALY2E YOUR MARKET AND
CUSTOMER PROFILES AND SO GAIN AN UNDERSTANDING OF
THEIR WANTS DESIRES AND PERCEI#ED NEEDS YOU CAN
BEGIN TO REORIENT YOUR BUSINESS O#ER TIME TO TAKE
BEST AD#ANTAGE OF THESE NEW INSIGHTS$ CONSIDER
BOTH THE SHORT TERM AND LONG4TERM IMPLICATIONS OF
DE#ELOPING AND IMPLEMENTING THE RIGHT TARGET
MARKETING STRATEGY FOR YOUR BUSINESS$
Cu-t+m , Attitu! -
• ;or a long time, people have !elieved that advertising can !e used to change
people/s minds a!out what they want. This is an incredi!ly difficult processat !est, and an e#tremely e#pensive one. Because of these two factors, it is a
process that smaller firms simply cannot afford to pursue. Instead, it is much
more productive for any si3e firm to tune in to target customer attitudes as
they currently e#ist. Once they have identified the actual prevailing attitudes,
they can !egin to organi3e company resources ; ! ! t+ =+;-t,u=ti? 0"
/!!, -- /;! -/ti-<" t. - /ttitu! - t. " u -ti+; i-
"What are the existing customer attitudes?"
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7ith this as an o!jective, developing an understanding of e#isting customer
attitudes !ecomes essential, and their identification !ecomes an important part
of the mar eting process. Once these customer attitudes, needs or preferencesare identified, the entire firm can then organi3e itself to satisfy these needs as
completely and efficiently as possi!le.
T/,> t M/, ti;>
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C+m:/,i-+; +< Aut+m+bi0 A;! C+;-um ,Du,/b0 At "ealership )evel
&. o Att,ibut - Aut+m+bi0 C+;-um , Du,/b0 -
< Turnover +igh )ow
? Margin >Q5<?Q ?Q5GQ
8enetration )evel
More in small or large
towns or cities
More in $ural areas or
in cities also
GTraining of &ales1#ecutives
1#ecutives get Trainingafter every specific period As such no training
J &upply5Chain Co5V"ealer5VCustomer Co5V"istri!utor5V"ealer VCustomer
E "iscount Margin Cartel"epends on "ealer To"ealer
H C&$ 8roper well organi3edOnly &ales man is thereto serve the customer
> A&& Customer get free serviceCustomer have to go atmanufactured level
=BrandAssociation
Customer first choice ismore pertinent
Customer can changehis or her choice
<K 8ayment Instantaneous 8aymentMore focus on ;inance
Installment
<<8ost5&ales;ollow %8 More 0ery )ess
<?Buying8rocedure
Customer can wait for newmodel Instant !uying
< "ata!ase )arge ;ew
<G Brand Transition &ingle5Tier Multi5Tier
<J Advertisement 8arent Company dealer !oth give advertisement Only from 8arentCompany
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<E)oyality8rograms es o
<H
Customer&atisfactionInde#
7ell5 "efined Organi3ed one
<> 8romotion ;ree &ervice Camps one
<=Customer$etention More 0ery )ess
?K Maintenance
Only free service whichcustomer can e#tend upto
G years*first ?yr are free
Annual Maintenance
Contract *AMC
Maruti s mar eting o!jective is to continually offer the customer new
products and services that@
• $educe the customer s cost of ownership of their cars and
• Wantic ipate and address the customer s needs and preferences in all
aspects and stages of car ownership, to provide what they refer to asthe EK degree customer e#perience.D
They sell ten models with more than JK variants in segments A, B, C, and
utility vehicle segment of the Indian passenger car mar et. Of these, they
manufacture nine models and import the -rand 0itara as a completely !uilt
unit from &u3u i in 4apan. Their models and variants are designed to address
the changing demands of the mar et and are periodically upgraded in
technology, styling and features. To ta e advantage of the !rand recognitionassociated with their products, they retain the !rand name of the product
through various stages of product upgrades over time. ;or e#ample, the
version of the Maruti >KK !rand currently sold in the mar et is a significantly
upgraded version, in terms of technology, design and styling, of the Maruti
>KK launched in <=> .
A M/,uti 966
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A OMNI
B 2 ;
B W/>+; R
B A0t+
C E-t m
C B/0 ;+
C # ,-/
C SWIFT
Uti0it" # .i=0 GYPSY KING
Uti0it" # .i=0 GRAND #ITARA
BALENO
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WAGON R
ESTEEM
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MARUTI 966
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NEW ALTO
OMNI
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SWIFT
#ERSA
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2EN
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OBJECTIVE OF THE STUDY
My a!" o#$e%&!'e of &(e )&*+y o" &(!) ,-o$e%& !) &o
+e o")&-a&e &(e a-.e&!"g )&-a&eg!e) of Ma-*&! /+yog L&+
A"+ &o a--!'e a& y f!"+!"g) I (a'e +o"e fe a"a y)e)
a OT A"a y)!)
: PE T A"a y)!)
A"+ a )o 5 P;) of Ma-.e&!"g
• P-o+*%&
• P-!%e
• P(y)!%a D!)&-!#*&!o"
• P-o o&!o"
• Po)!&!o"!"g
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RESEARCH METHODOLOGY
The nature of the project wor has !een e#ploratory as no hypothesis, is
ta en to !e tested. Though the conclusions drawn could !e ta en as the
hypothesis and further tested !y the research wor underta en in the
relevant field. The reason for choosing the e#ploratory research design is
the fact the project report has !een primarily !ased upon the secondary
sources of data and whose authenticity could !e assured of.
The reluctance of the company/s personnel in parting with much of
information led the project repor t to !e !ased su!stantial ly on the
secondary source of data. The sources of data used in data collection are
the following@
P,im/," -+u,= -
In order to gather information a!out the various products, I personally
visited a num!er of retail mar ets and collected data pertaining to the
pr ices of the produc ts of fered. The mar et vi si ts were useful in nowing
the comparative prices and 6uality of the offered !rands vis5X5vis the
competitive !rands. "etail regarding the pac aging of the products were
collected were collected and I also in6uired a!out the various sales promot ion schemes fo llowed !y the th ree compan ies.
By interviewing these retailers valua!le information was collected. I
in6uired from them a!out their mar eting advertising and distri!ution
strategies.
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S =+;!/," -+u,= -
Information was collected from secondary sources such as pu!lic li!raries,
newspapers, !usiness maga3ines.
Beside these the use of Internet was also made in collecting relevant
information. The data collected from the a!ove mentioned sources has !een
ade6uately structured and used at appropriate places in the report. This
pa rt icular way of da ta co llec tion was used !ecaus e of it s low cost *e#cep t
data collected through surfing the internet and less time consumption.
The information gathered included@
• Their annual reports *8rocter -am!le and 4ohnson and 4ohnson .
• 8amphlets.
• 8osters.
• 8ress clippings.
• ews re leases .
• ews le tters.
• 8ictures.
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DATA ANALYSIS AND INTERPRETATION
In August, ?KK Maruti crossed a milestone of e#porting KK,KKK vehicles since its
first e#port in <=>E. 1urope is the largest destination of Maruti s e#ports and
coincidentally after the first commercial shipment of G>K units to +ungary in <=>H,
the KK,KK mar was crossed !y the shipment of JH< units to the same country. The
top ten destinations of the cumulative e#ports have !een etherlands, Italy,
-ermany, Chile, %.(., +ungary, epal, -reece, ;rance and 8oland in that order.
The Alto, which meets the 1uro5 norms, has !een very popular in 1urope where a
landmar ?KK,KKK vehicle were e#ported till March ?KK . 1ven in the highly
developed and competitive mar ets of etherlands, %(, -ermany, ;rance and Italy
Maruti vehicles have made a mar . Though the main mar et for the Maruti vehicles
is 1urope, where it is selling over HKQ of its e#ported 6uantity, it is e#porting in
over HK countries.
Maruti has entered some unconventional mar ets li e Angola, Benin, "ji!outi,
1thiopia, Morocco, %ganda, Chile, Costa $ica and 1l &alvador. The Middle51ast
region has also opened up and is showing good potential for growth. &ome mar ets
in this region where Maruti is, are &audi Ara!ia, (uwait, Bahrain, 9atar and %A1.
The mar ets outside of 1urope that have large 6uantities, in the current year, are
Algeria, &audi Ara!ia, &rilan a and Bangladesh. Maruti e#ported more than J<,KKKvehicles in ?KK 5KG which was J=Q higher than last year. In the financial year ?KK 5
KG Maruti e#ports contri!uted to more than <KQ of total Maruti sales.
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MA$%TI A)) I "IA &A)1& $ T$1 "
S >m ;t 866(465 Growth 866546) Growth 866)46& GrowthA' Mi;i 4 H/t=.b/= <EH,JE< 17 <<E,?E? -!1 >=,?? -"!A8 C+m:/=t 4 H/t=.b/= <HE,< ? #7 ?H<,?>K $# J,< E "#A( Mi! Si <G,<H "% ?=,E H 1&' <,= = %A5@A)@A& E1 =$@P, m$@Lu1u," A NA A NA A NAC #/; T": J=,J?E 1$ EJ,K<= ' EE, EE "P/-- ;> , C/,- MUL 5'3 (*8 28% 598 '*9 16% )88 &&5 8%
Passenger Cars Tota! ndustr# 3)9 '8( 26% 99) 68* 1$% *59 &&* $%MU# Uti0it" # .i=0 - ,JJJ 1" J,?KG #( G, HG -1(P/-- ;> , # .i=0 - MUL 586 *53 28% 593 568 '& )83 6(9 9
Passenger eh ic!es Tota! ndustr#
*6' ')6 2&% ' 6)6 85& 1$% ' '8* ('& 8%
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MARKET SHARE
2005-06 Market Share-Segment A2TATA20%
HYUNDAI21%
MARUTI59%
2005-06 Market Share-Segment A3
TATA20%
F RD1!%
"M6%H NDA
20%
TH#RS$%
MARUTI1$%
HYUNDAI16%
2005-06 Market Share- a&&enger 'ar&
T Y TA1%
TH#RS3%
F RD3%"M1%
H NDA!%
TATA16%
MARUTI55%
HYUNDAI1$%
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COMPETITION MODELS
SEGMENTM/,uti C+m: titi+;
A' Mi;i 4H/t=.b/=
M>KK
A8 C+m:/=t 4H/t=.b/=
'en, 7agon$,Alto, &wift
+yundai 5 &antro -et3 Tata 5 Indica 8alio -M 5 Corsa &ail
A( Mi! Si 1steem, Baleno +yundai 5 Accent Tata 5 Indigo 8et ra+onda 5 City -M 5 Corsa, Optra, Aveo
;ord 5 I on, ;usion, ;iestaA5@A)@A&
E1 =$@P, m$@Lu1u," +yundai 5 1lantra &onata +onda 5
Accord -M 5 0ectra ;ord 5 Mondeo & oda5 Octavia &uper! Toyota 5 Corolla
Camry "aimler Chrysler 5 C,1, & ClassC #/; T": Omni, 0ersaMU# Uti0it"
# .i=0 --ypsy, -rand
0itaraMitsu!ishi 5 8ajero +yundai 5 Terracan
Tucson ;ord 5 1ndeavor Toyota 5 8rado Innova issan 5 N Trail +onda 5 C$0 -M5 ;orrester Tavera Tata 5 &umo & afari
Mahindra 5 4eeps, &corpio, Bolero
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ANALYSIS
Corporates, don/t tal a!out e#ceeding customer satisfaction 5 that/s passe 5 the time
has come to Yda33le the customer/. But to do that, first you must get customer
relationship management *C$M in place. In the conte#t of India, this is very crucial
as the recent 7orld 1conomic ;orum $eport on -lo!al Competitiveness has ran ed
India G out of G= nations surveyed, on Ycustomer orientation/.
Managing customer relationships is not only comple# !ut is also multi5faceted and
thus calls for an inter5disciplinary approach. 8articularly, as in the ew 1conomy,the customer has !ecome very demanding and the emphasis needs to !e on !eing
consumer5centric. Technology solutions as applied to various front5end functions
could aid in !uilding a via!le lin !etween the organisations and customers
irrespective of geographical separation. This has to !e !ac ed with appropriate
systems and processes to mine the right type of data !y the right function in an
organisation.
Besides technology, systems and processes, another important lin is human
resource, If C$M is the ey, +$ would !e the nerve centre for any C$M activity.
At Maruti %dyog )td the first step for a company to enhance value through C$M
was to identify its target !ase. At Maruti, the categories which emerged were@
F Two5wheeler owners
F Customers ta en away from the competition
F &ervices sector.
After identifying the target, the ne#t stage was to !uild on customer relationships.
Maruti, therefore, !egan evaluating the current data!ase of consumers to identify
those who wanted Maruti service or !etter still, wanted to upgrade up the value
chain in Maruti products. Third, it !egan wor ing in tandem with the oil industry to
get data feed!ac on two5wheeler consumers5and identify those ready to move into
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four5wheeler purchases. %ltimately, C$M is all a!out value enhancement for the
organisation.
;aced with increasing competition from a!road, a cyclical !usiness environment,
and the challenge of a widely dispersed dealer networ , Tata Motors implemented
&ie!el Automotive, a comprehensive customer relationship management *C$M
solution designed specifically for companies in the automotive industry. &eamlessly
integrated with Tata Motors dealer management system and &A8 !ac 5office
applications, &ie!el Automotive has delivered significant !enefits across the
e#tended organi3ation, including improved customer satisfaction, increased revenue
and productivity, and reduced costs.
The &ie!el C$M solution ena!les Tata Motors to gather feed!ac on products to
improve design or manufacturing 6uality as well as measure the effectiveness of
mar eting campaigns and programmes. The automa er selected &ie!el Automotive
!ecause of its partner management capa!ilities to handle its large dealer networ ,
the solution/s 3ero5footprint we!5!ased architecture and user5friendly interface5
critical to support thousands of salespeople with various s ill levels.
• Improved demand forecasting, planning, logistics management, and
inventory management
• Overall reduction in 6uality5related costs due to faster product
performance feed!ac
• Improved wor flow and escalation of customer grievances for faster
resolution
• Increased revenue growth from !oth higher vehicle sales and a rise in
the company/s after5sales parts !usiness
FINDINGS FROM SURVEY
Total um!er of $espondents@ <J Officials
um!er of $espondentsMaruti %dyog )imited J+yundai Motors India )td ?
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-eneral Motors ?Tata Motors J;ord India )imited <
"o you face pro!lems in maintaining good and effective relationshipswith customersU
9uite;re6uently
;re6uently Average $arely
Maruti %dyog)imited
? 5 5
+yundai MotorsIndia )td
5 ? 5 5
-eneral Motors 5 ? 5 5Tata Motors ? 5 5;ord India )imited 5 < 5 5
()*teFre+)ent,
33%
Fre+)ent,6$%
A.erage0%
Rare,0%
;indings@ According to the responses of the respondents it can !e concluded that all
the respondents face pro!lems in maintaining good and effective relationships with
customers. 7ith changing customer needs its 6uite o!vious that maintaining good
relations with customers need an effort on part of the "ealers and Manufacturers.
H+ 00 =/; "+u, =+m:/;" i! ;ti<" it- ;! u- , =u-t+m ,-
♦ Maruti %dyog )imited@ According to the officials of M%), the company s
endeavor is to !e close to the customer, to anticipate and fulfill their
needs. They !elieve that the new !usiness initiatives ta en !y M%) have
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e#panded the scope of this relationship. Maruti offers auto insurance, auto
finance, corporate lease and fleet management and resale of pre5owned
cars in partnership with its dealers. ;or the first time, car customers inIndia are a!le to access these services through a one5stop shop, !ac ed !y
the leader !rand. The way they loo at it is that this will provide complete
mo!ility solutions to the Maruti customer. This also ena!les them to
e#tend their relationship with the customer !eyond the point of purchase to
the entire ownership life cycle. &ince these services play a vital role in the
car customer/s ownership e#perience, the new initiatives ena!le them to
offer Maruti owner s greater value, assurance and convenience.♦ +yundai Motors India )td@ According to the officials of +yundai Motor
India is at a very e#citing stage in India today. They are e#periencing
tremendous growth 5 which is a true sign of enjoying customer confidence.
In order to strengthen their position further in the Indian mar et, they need
to continuously wor on !uilding their corporate reputation while
aggressively positioning their products. ;or +MI/s focus and commitment
to the Indian automo!ile customers is of critical importance. Its !een theircontinuous endeavor to fulfill the entire spectrum of customer needs and
desires, across all socio5economic lifestyle groups. They have therefore,
in just E years of +MI/s young life, esta!lished nationwide sales service
networ , scaled up state5of5the5art manufacturing capacity, launched
glo!al5standard cars in rapid succession and e#ported cars made5in5India
across the glo!e. -et3, a much admired lifestyle !rand in 1urope and
elsewhere, is a step in the same direction and is a cutting5edge, addition to
+MI/s e#tensive product portfolio.
♦ -eneral Motors@ According to the officials at -eneral Motors is positioned
as a mature and responsi!le car manufacturer, which offers great value5
for5money products to its customers. The company leverages its glo!al
e#pertise to manufacture and mar et well engineered and safe products
through its well5esta!lished retail networ that provide an e#cellent
ownership e#perience to its customers.
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♦ Tata Motors@ According to the officials of Tata Motors the foundation of
the company s growth over the last JK years is a deep understanding of
economic stimuli and customer needs, and the a!ility to translate them into
customer5desired offerings through leading edge $ ".
♦ ;ord India )imited@ According to the officials of ;ord India has reaffirmed
its commitment to enhancing the purchase and ownership e#perience for
its customers with the rollout of ;ord BrandZ$etail concept across the
country. ;ord India has !een revamping all dealerships under the ;ord
BrandZ $etail, a glo!al corporate identity program to offer a world5class
purchase e#perience to the customer. ;ord India continues to e#pand itsdistri!ution networ and will grow to <<J dealer outlets in H= locations !y
the end of ?KKJ. The officials also mentioned that ;ord India provides
training support to dealers in areas including customer satisfaction, sales,
technical and non5technical aspects of the !usiness and in the financial
management of the dealership.
C/; "+u, =+m:/;" !i<< , ;ti/t it- =u-t+m ,- b/- ! +; t. i, ?/0ut+ "+u /;! t. i, ; !- <,+m "+u
es oMaruti %dyog )imited J 5+yundai Motors India)td
? 5
-eneral Motors ? 5Tata Motors J 5;ord India )imited < 5
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Ye&100%
N/0%
;indings@ According to the respondents *officials at all the ;ive Automo!ile Majors
their company was a!le to differentiate its customers !ased on their value to them
and their needs from the company. This is important for the automo!ile industry
!ecause the dynamics of selling cars is changing and manufacturers and dealers who
fail to meet the rising needs and e#pectations of their customers will lose out to
those who can. Buying a new car is an e#perience customer will remem!er for a
long time and ensuring that this e#perience is a satisfactory one is essential in
!uilding !rand loyalty and customer advocacy.
H+ 00 !+ "+u i;t ,/=t it. "+u, =u-t+m ,-
♦ Maruti %dyog )imited@ According to the officials of M%), their overall strength
lies in !uilding an organi3ation that is sharply focused on the voice of thecustomer. Maruti/s consistent performance over the past several years has
resulted in a steady increase in the percentage of its customers who say they
intend to remain loyal to the !rand. n order to !e closer to the customers, it is
essential that we should have multiple avenues of one5to5one interaction with
our customers. As a major step in this direction they have started Call Center
service with toll5free num!er for the people of ational Capital $egion in year
?KKK. This service, named A;"tim M/,uti , is now availa!le nation5wide.Customers in +? , 366 =iti -@t+ ;- /=,+-- I;!i/ can contact them any time
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during the day and all days of the wee . The toll5free service is '966 '966 '96 ,
it is accessi!le from any fi#ed5line or mo!ile phone of B& )2MT ) networ
across the nation. The A;"tim M/,uti Call5center can also !e accessed usingtelephones on other networ s !y dialing 6*9''96')') *not toll5free . The
o!jective of this service is to ensure that customers have 6uic and easy access
to all information on their models, prices, dealers, value added services, finance
options, and the locations of our numerous service stations. Anytime Maruti
helps customers to learn more a!out their Maruti Cars and also a!out other
services offered !y Maruti. ;or prospective !uyers, Anytime Maruti can help
them deciding amongst various Maruti Models and !enefits of !uying fromMaruti.
♦ +yundai Motors India )td@ According to the officials at +MI The
Company has set up more than HK dealer wor shops that are e6uipped with
the latest technology, machinery, and international 6uality press, !ody and
paint shops, across the country, there!y providing a one5stop shop for a
+yundai customer. +yundai also has a fleet of H> emergency road service
cars 5 specially e6uipped &antro that can provide emergency service to allits customers anytime, anywhere. The customers can also call on <>KK5<<5
GEGJ *Toll ;ree 5 Only from MT ) B& ) num!ers
K<<5 ?E=?GEGJ *;or all -&M Connections 2 )andline other than MT )
B& ) num!ers for any 6ueries customer complaints.
♦ -eneral Motors@ According to the official at -M, to !ring greater value
and service to customers, they have introduced the -M &ervice 8lus auni6ue cluster of services, designed to compliment every aspect of owning
a car and ensuring complete peace of mind. &o !e it emergency assistance,
an urgent car servicing or even sourcing genuine accessories, Customers
can !e assured of yet another great moment from -eneral Motors. ;or any
car related 6uery or emergency re6uirement, customers can call ?G5hour
assistance at K K>K>K. The uni6ue 5hour service programme comes with
a promise of servicing your car in just hours, or you get the service free.
7ith their ?G5hour wor shops, customers can now conveniently get their
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car serviced, when they use it the least. 7idespread sales and service
outlets across the country ensure that you have the assurance of great
service wherever you travel in India.♦ Tata Motors@ according to the officials of Tata Motors the company has
strengthened its distri!ution and customer care networ and today has HH
dealers and ? K authori3ed service outlets spread across <<= locations in
India.
♦ ;ord India )imited@ According to the officials at ;ord solutions aims to
provide 6uality, peace5of5mind products for the customer and em!odies a
!rand synonymous with its a!ility to provide products that can !e tailoredto suit one/s individual needs. ;ord &olutions serve to develop products for
;ord and the "ealer !ody that enhance customer satisfaction. 7hen your
vehicle needs a repair or a component replaced, you need 9uality Care
service. our ;ord "ealership is simply the !est place to have your
vehicle serviced. Bra es, shoc s, !atteries or anything your vehicle may
need, your dealership is the place to get it. Customers can place a online
service re6uest at ;ord.
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H+ 00 !+ - "+u, =+m:/;" =u-t+mi it- :,+!u=t- /;! - ,?i= -
b/- ! +; ./t it ;+ - /b+ut it- =u-t+m ,-
+ighly Customercentric
&omewhatCustomer centric
ot Customercentric
Maruti %dyog)imited
J 5 5
+yundai MotorsIndia )td
? 5 5
-eneral Motors ? 5 5
Tata Motors J 5 5
;ord India)imited
< 5 5
Highly Customercentric100%
SomewhatCustomer centric
0%
Not Customercentric
0%
;indings@ All the officials of the Automo!ile Majors agree that all products and
services are highly customer centric and !ased on the information they now a!out
the customers.
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D+ - t. =+m:/;" ./? -t/b0i-. ! u/0it" /--u,/;= :,+= -- -
es oMaruti %d yog )imited J 5+yundai Motors India)td
? 5
-eneral Motors ? 5Tata Motors J 5;ord India )imited < 5
Ye&100%
N/0%
;indings@ According to all the respondents their respective companies have
esta!lished 6uality assurance processes.
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D+ - t. =+m:/;" t/ =u-t+m ,- ; !- i;t+ =+;-i! ,/ti+; . ;- 0 =ti;> /;! im:0 m ;ti;> t =.;+0+>"
es oMaruti %dyog )imited J 5+yundai Motors India)td
? 5
-eneral Motors ? 5Tata Motors J 5;ord India )imited < 5
Ye&100%
N/0%
;indings@ According to all the respondents their respective companies ta e
customers/ needs into consideration when selecting and implementing technology.
As per officials of -M the Tavera is a classic case of an India5specific product.
Though it is an international product, the car has !een totally re5engineered for
Indian mar et re6uirements.
At +yundai &egment5needs and !udgets are specific and a suita!le variant
strategy is inevita!ly re6uired to meet different segment5needs and to !e a
volume player in the segment. The variants are decided after considera!le
research. They have !een targeted at different segments and they presently
witness a healthy mi#. As this segment evolves they rationalise the variant
strategy and add or delete variants to meet mar et re6uirements. They have
put in place a customer contact programme where they interact with
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customers in groups as well at an individual level at regular intervals to assess
their needs and overall e#perience with their product.
The typical Indian consumer loo s for value and does not mind paying a little
more for it. ;uel efficiency, airconditioning and relia!ility along with ease of
service and low cost of ownership are major considerations during the
purchase process in India.
D+ - t. =+m:/;" :,+?i! it- m:0+" - it. t =.;+0+>" t./t
;/b0 - t. m t+ . 0: =u-t+m ,-
es oMaruti %d yog )imited J 5+yundai Motors India)td
? 5
-eneral Motors ? 5Tata Motors J 5;ord India )imited < 5
Ye &100%
N/
0%
;indings@ According to all the respondents the company provides its
employees with technology that ena!les them to help customers. 1mployee
and "ealer Training is a part of every company Customer &ervice Initiative.
This ena!les them to provide the customers with state of art products and
service to customers.
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D+ - t. =+m:/;" m/i;t/i; / -t,/t >" <+, =+00 =ti;> /;! u-i;>
i;<+,m/ti+; /b+ut =u-t+m ,-
es oMaruti %dyog )imited J 5+yundai Motors India)td
? 5
-eneral Motors ? 5Tata Motors J 5;ord India )imited < 5
Ye&100%
N/0%
;indings@ According to all the respondents they have proper information a!out their
most profita!le customers. Companies use Informal Meetings, &ales Interaction and
calls to collect relevant information needed to maintain good customer relationship.
The most effective companies li e Tata Motors use all the a!ove while most of othertrac the data during sales interaction. All the Automo!ile majors surveyed used
C$M software for trac ing Customer Information. According to the officials
Customer and &upplier ;eed!ac are gathered through Call Centers, Mails and
"irect Interviews. There are other methods too !ut the a!ove three are the most cost
effective.
H+ << =ti? 0" !+ - t. =+m:/;" =+mbi; i;<+,m/ti+; +; =u-t+m ,- it.it- 1: ,i ;= - t+ > ; ,/t ;+ 0 !> /b+ut it - =u-t+m ,-
+ighly 1ffective &omewhat ot 1ffective
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1ffectiveMaruti %dyog)imited
G < 5
+yundai MotorsIndia )td
? 5 5
-eneral Motors ? 5 5
Tata Motors ? 5
;ord India)imited
< 5 5
Highly Effective80%
Somewhat effective20%
Not Effective0%
;indings@ All the >KQ officials of the Automo!ile Majors their company
highly effective in com!ining information on customers with its e#periences
to generate nowledge a!out its customers while ?KQ said that the company
was somewhat effective.
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W./t -t :- ./- t. =+m:/;" t/ ; t+ im:,+? t. t+t/0 1: ,i ;=
+< it- =u-t+m ,-
♦ According to the Maruti %dyog )imited Officials@ &ales e#perience is the
most important factor, accounting for H per cent of the &&I score, and
includes issues such as fulfillment of commitments and lac of hassles
during the sales process, overall honesty and integrity of the dealership
personnel and sufficient time to ma e the decision. Maruti entered the
Indian car mar et, to provide fuel efficient, low5cost vehicles, which wererelia!le and of high 6uality. It also offered customers a friendly sales and
after sales service. 7ith high customer satisfaction ratio and Total
automo!ile value these o!jectives shaped Maruti as !ig -iant in the field
of automo!iles.
♦ According to +yundai Motors *India Officials@ +yundai/s !ig hit was its
compact family car named &antro which !ecame a huge hit with its launch
and capture hearts of millions with increasing satisfied customers day !yday. 7hen +yundai forayed into the Indian mar et it moved 6uic ly to set
up a networ of dealers and service stations 5 it has close to ?EK of the
latter. &ervice was identified as a powerful differentiator to the way things
were done and word of mouth did the rest. It was one of the ways to eep
the +yundai customer within our fold. Also, these are advanced cars,
which can/t !e repaired !y a corner mechanic. +yundai offers service for
less, it/s easily reacha!le and allows fle#i!ility and customers appreciatethat. +yundai Motor India )td *+MI) launched Achieve 9<8<D 6uality
campaign on March ?G, ?KKE primarily focusing on achieving the -lo!al
o.< 9uality Brand image. The campaign has !een initiated across the
+yundai vendor fraternity. This new initiative will strengthen the 0endor
6uality organisation and will ensure the major part 6uality improvement
such as &i# &igma Activity, training and improve the Tier ? suppliers. The
campaign will also help the suppliers to improve their CJ& * C Correct
Container, Correct 9uantity Correct )ocation and J& &orting,
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&ystemati3ing, &hining, &tandardi3ing &elf5"iscipline , T8M *Total
8roductivity Maintenance , !enchmar ing activities and upgrade 6uality
systems.
According to ;ord India )imited officials@ 8resently ;ord is offering seven
different models, ;ord India )imited *;I) is catching up fast with the Indian
consumer. ;I) was the first su!sidiary of a multinational car manufacturer in
India to launch a car designed specifically for India. They have consistently
adapted the specification of the I on to ensure it meets the needs of Indian
consumers. They have improved the horn and the steering column switch so
that they are more ro!ust the new com!ination switch has proved so effective
that it is used worldwide. They have also developed a hydraulically activated
clutch system, improved ground clearance and upgraded air conditioning to
satisfy the specific needs of the Indian customer. This is part of a continuous
improvement process. &atisfying our customers They have introduced
initiatives to assess customer satisfaction and to act on their concerns. The
Intensified Customer Concern "efinition *ICC" is a telephone survey of
customers conducted to assess pro!lems in three areas@
They recognise the need for additional products. They are wor ing towards
introducing products to match our customer s dynamic lifestyle, products
which have progressive styling and are great to drive.
[ 0ehicle 6uality concern [ "esign and general comments [ egative sales and
service
♦
According to -M officials@ -eneral Motors target is to offer a choice of products to their customers to match their different needs and !udgets.
Being the world s largest car manufacturer, they have access to a range of
products through their glo!al alliances. They are already present in most
segments and will shortly have products in additional segments. +owever,
they are focusing on the fast growing M80 segment with the Chevrolet
Tavera and have invested su!stantially in this product line. They loo for
customers for life who will have a choice of products to !uy from their
sta!le. &ustained !rand !uilding efforts coupled with intensive ground5
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level activity has ensured that Optra has remained among the top two
players in its segment. They have refreshed the product through
continuous product improvements and have emerged as segment leader infuel efficiency. They have recently launched a limited edition of <JK cars,
which has received a very positive response and given us rich dividend in
terms of !rand !uilding and imagery. A product refreshment plan ensures
that they remain competitive and are ready to meet future challenges in
this segment. They also have a regular Customer $elation Management
programme where!y e#isting cus tomers are offered loyalty programmes
and great offers. &o far, they have organised si# Optra Ma# Mileage $allymeets where Optra customers compete to e#tract the !est fuel efficiency
out of their cars and all participants are treated to an overnight stay at an
e#otic locale with an evening of entertainment. The winners of these
rallies are given healthy cash rewards. These vents go a long way in
!uild ing goodwill and !rand loyalty.
♦ According to Tata Motors Officials@ TATA Motors is India/s foremost, and
the only fully integrated automo!ile manufacturer. 1sta!lished in <=GJ asTATA 1ngineering )ocomotive Company *T1)CO , to manufacture
locomotives and other engineering products, the company is today among
the world/s top <K producers of commercial vehicles. TATA Motors was
also previously nown as TATA 1ngineering. It is today one of the !iggest
and most prominent companies in the TATA group, with an annual
revenue of S<.> !illion in ?KK<5K?. Today TATA motors/ vehicles run in
more than HK countries. TATA Motors use a manual dealer managementsystem, where every dealer managed details. 7ith legacy5!ased systems,
the environment produced inconsistent data, ma ing interpretations
difficult and resulting in inefficient planning for capacity and spare parts.
TATA Motors re6uired a standardised solution that would provide them
with@
• Increase in sales and profita!ility !y easy management.
• Improved accuracy of dealer5captured information.
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• Colla!oration !etween vehicle manufacturers and dealers.
<. A strong feed!ac mechanism and interface for communicating with
customers. TATA Motors chose IBM as its partner to provide an
infrastructure solution. IBM created a &ie!el solution to provide a "M&
solution for TATA Motors and then provided a relia!le and scala!le IT
infrastructure for developing and deploying its "M& application. The IBM
solution has simplified the IT infrastructure for TATA Motors. The !enefits
include 5 low total cost of ownership, a more comprehensive view of
customers, enhanced customer e#periences and improved loyalty. 7ith
reengineered !usiness process, the company can also analyse customer
interactions and other information more accurately, improve capacity
planning and increase profita!ility. ;aced with increasing competition from
a!road, a cyclical !usiness environment, and the challenge of a widely
dispersed dealer networ , Tata Motors implemented &ie!el Automotive, a
comprehensive customer relationship management *C$M solution designed
specifically for companies in the automotive industry. &eamlessly integrated
with Tata Motors dealer management system and &A8 !ac 5officeapplications, &ie!el Automotive has delivered significant !enefits across the
e#tended organi3ation, including improved customer satisfaction, increased
revenue and productivity, and reduced costs. Apart from providing its
customers with high performance automo!iles, Tata Motors strongly
!elieves in customer safety. &everal cases have !een cited where passengers
driving Tata vehicles have !een saved after terri!le accidents. Tata Motors
esta!lished a crash5testing facility, the only one of its ind in the country, in8une in <==E. The small wor force of ?< mem!ers including engineers aims
to control the serious ris s and intrusions in accidents. The company !elieves
that this factor has !een vital to the success of the Indica and other products
under the company s passenger car unit. The ey things that the critical
people spend time on <. Commitment to 6uality manufacturing standards ?.
"eveloping new products . Customer &afety and satisfaction G. -lo!al
e#pansion orms.
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H+ mu=. i;<0u ;= !+ =u-t+m ,- ; !- ./? +; t. =+m:/;" -:,+!u=t- /;! - ,?i= -
0ery +igh &u!stantial 0ery )owMaruti %dyog)imited
? 5
+yundai MotorsIndia )td
? 5 5
-eneral Motors ? 5 5
Tata Motors ? < ?
;ord India )imited < 5 55
Very High6 %
Su!stantial20%
Very "ow1#%
;indings@ All the EHQ*<K responding officials of the Automo!ile Majors
customer needs have a very high influence on company s products and
services while ?KQ* respondents said that it had su!stantial influence while
< Q*? respondents said that customer needs had very low influence on
company s product and services.
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FINDINGS OF THE STUDY
PRICES OF MARUTI PRODUCTS
Car mar et leader Maruti %dyog )imited has announced a marginal increase in price
of certain models. The increase, which comes into effect from today, varies from
K.<H percent to <.GH percent.
The price increase is due to rise in input costs and freight costs, which
increased following the rise in oil prices. In this phase, the company has
decided to pass on only a part of the increase in costs to the customers. There
is no change in the prices of &wift, 'en, Baleno *0#i and 7agon$ *8etrol .
E14S.+ ,++m P,i= - i; D 0.i i; R-
M+! 0 N O0! I;=, /-C./;>
M966 St! <=<EGE <=<<GE JKK K.?EQ
M966 St! A= ?< KE? ?<?JE? JKK K.?GQ
A0t+ St! ? <J>J ? <K>J JKK K.??Q
A0t+ L1 ?EJ?E? ?EGHE? JKK K.<=Q
A0t+ L1i ?> >H> ?> H> JKK K.<>Q
Om;i C/,>+ LPG <=GH?J <=?H?J ?KKK <.KGQ
Om;i C/,>+ ?< HKE ?< ?KE JKK K.? Q
Om;i Ei>.t S /t , ??<?E> ??KHE> JKK K.? Q
Om;i LPG ? K >> ??H >> KKK <. ?Q
E-t m L1 GGJ=E> GGG=E> <KKK K.??Q
E-t m L1i GHE?? GHJ?? <KKK K.?<Q
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E-t m #1i J<<J?K J<KJ?K <KKK K.?KQ
B/0 ;+ L1i JHE<H JHJ<H <KKK K.<HQ
# ,-/ D1 G JHJ G ?JHJ <KKK K.? Q
# ,-/ D18 GH<HH= GHKHH= <KKK K.?<Q
# ,-/ St! EK<>? J=<>? <KKK K.?>Q
W/>+;R L1 LPG GJ<KE GK<KE JKKK <.GHQ
W/>+;R L1i LPG H <EK E><EK JKKK <. EQ
Limit/ti+;- +< t. Stu!"
&ince the road to improvement is never ending, so this study also suffers from
certain limitations. &ome of them are as follows@
Because of illiteracy, it was a time consuming method in which
continuous guidance was re6uired.
9uestionnaire method involves some uncertainty of response. Co5
operation on the part of informants, in some cases, was difficult to
presume.
It is possi!le that the information supplied !y the informants may !e
incorrect. &o, the study may lac accuracy.
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CONCLUSION
The price of a car is just one5third of what it cost you over its lifetime. $unning and
maintaining it ma e up the other two5thirds. Ta e into account resale value and its
real cost !ecomes clear. Maruti &u3u i stands for value as much as it stands for
performance. In spite of rising input costs, we try our !est to eep prices down.
Their running costs and resale values are un!eata!le too. othing matches the
delight their cars deliver. In the 4" 8ower C&I study ?KKJ, >JQ of Maruti &u3u i
owners stated that they would definitely recommend the car they drive to someoneelse. Infact, you don t !uy a Maruti &u3u i. ou invest in it.
After the rash of new cars launches the past two years, the relative lull in the auto
industry is showing up in the customer satisfaction indices. According to the ?KKJ
four5wheeler Total Customer &atisfaction *TC& study conducted !y the specialist
division of T & Automotive, the automo!ile ownership e#perience or customer
ownership e#perience has declined in all areas compared to ?KKG. The study is one
of the largest syndicated automotive studies in India, representing the responses of
more than H,KKK new car !uyers. The comprehensive study covers over JK models
with customer evaluations ta en in the ey areas of sales satisfaction, product
6uality, vehicle performance and design, after5sales service, !rand image, and cost5
of5ownership. The TC& inde# score provides a measure of satisfaction and loyalty a
given model enjoys with its customers. According to T & Automotive, the decline
is predominantly for older, small and entry mid5si3e car models. The ageing of these
models seems to !e posing a stiffer challenge for manufacturers to sustain past
performance levels at a time when customer e#pectations are rising sharply.
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The study reveals a significant increase in the importance of sales satisfaction,
product 6uality *!oth performance and design and !rand image since ?KK ,
indicating rising customer e#pectations over the years. This year/s study shows the
Maruti &u3u i &wift and the Toyota Innova as the winners, with the two vehicles
achieving segment5!est ratings !y performing well in areas of greater relevance,
particularly product and !rand image. &ales satisfaction is wea in !oth these
models, largely !ecause of the longer waiting time for new deliveries.
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T & Automotive/s TC& &tudy has, since its inception in ?KK?, surveyed over ?J,KKK
car !uyers and has!uilt a si3ea!le sample !ase. &ome of the ey findings, indicators
and inferences from the ?KKJ study are@
8rogressive reduction in car ownership cycle5time from an average of E< months in
?KK? to J months in ?KKJ@ This shortened cycle5time is !ringing these owners for
repeat purchases sooner and will, therefore, further fuel the growth of the four5wheeler mar et. This trend is already visi!le in the growing additional2replacement
purchases. -rowth in additional *multi5car households and replacement purchases
up from J< per cent in ?KK? to EJ per cent in ?KKJ@ This will impact the volume
growth in higher5end segments as the current car owners show upward mo!ility.
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Increasing !udget for future purchases@ ;uture intenders with a !udget of $s E la h
plus have increased from GG per cent in ?KK? to J> per cent in ?KKJ. 7hile first5time
!uyers are declining as a composition of total volumes, the figure in a!solute termsis high, fuelled !y the up5gradation !y two5wheeler owners The study also throws
up the 6uestion as to whether it is also possi!le that the first5time car !uyer who is
generally a two5wheeler owner, is getting more fuel efficiency conscious and
tending towards postponing the car purchase decision due to the high cost of fuel. Of
course a shift in composition is also to !e e#pected with the upper premium compact
and mid5si3e segments projected to grow at a much faster rate than rest of the
industry. The TC& study was conducted from August through Octo!er across ?<cities. &mall sample models have not !een featured in the charts. These include the
;iat 8etra "iesel, ;ord ;usion, ;ord Mondeo, +yundai Terracan, Maruti 1steem
"iesel, Maruti &u3u i -rand 0itara, Maruti 'en "iesel, and Opel Corsa &ail. T &
has a glo!al networ spanning HK countries and is listed on the )ondon &toc
1#change.
M/,uti U!"+> Lt! is one of India /s leading automo!ile manufacturers and the
mar et leader in the car segment, !oth in terms of volume of vehicles sold and
revenue.
-ood Technology
%niform 8ricing
-ood &trength
More Coverage Area
;re6uent 2$egular 8roduct )aunch
Mar et )eader *with GHQ share
Oriented "riven Company
More 8roduct Offering
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+ealthy Annual $eport
Brand Image
Ma#imum "ealership as compared to other !rands
-ood &ale &ervice
&pare parts are cheap as compared to any other !rand
Cheap relia!le 6uality
AREAS FOR IMPO#EMENT @ RECOMMENDATION
;acade29uality of "ealership should !e improve
%niform of &ales 1#ecutives
8roper visiting cards should !e availa!le to the e#ecutives
Mostly dealers don t have their specific we!site
All 4apanese J s concept *&eiro, &ieton, &ciso, &eioetse, &hitsu e
should !e put into practice at "ealership
Maruti should regard as generous discount offers during ;estival
&eason li e avratra, "usshera, and "iwali to gear5up their sales
Maruti should advertise in &ports !ecause sports are increasingly
cutting into the share of mass entertainment channels
Maruti can start Money Bond &cheme instead of giving Cash
"iscount with more value. Customers eligi!le for an income !ond,
encasha!le after a <Jyear period.
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QUESTIONNAIRE
NAME%
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DATE OF BIRTH%
ADDRESS%
TELEPHONE NO%
E4MAIL ID%
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BIBLIOGRAPHY
• $eference Boo s, 4ournals, ewspaper, 7e! &ites, $eports, etc areto !e listed, out here
• Boo s
• (otler 8hilips, Mar eting Management Analysis, 8lanning
Implementation Control 1dition <==>. 8rentice hall of India )td. ew "elhi
• Maga3ines 4ourals ewapaper
• ame of the articles, Business Today@ <J5??May ?KKK
• ame of the articles, The times of India . Mum!ai@ ?< st May ?KKK
E: ITE• www.marutisu3u i.com
• 'igwheels.com
• Oncars.in
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